USD/JPY: MoF and BoJ to try ‘verbal’ interventions and sound more concerned about yen-weakness – Commerzbank USDJPY BOJ Japan Banks
has surpassed the 128 level. How much yen weakness is tolerable? According to economists at Commerzbank, the bar for FX interventions is very, very high.“Kuroda is in a catch-22 situation. Should he raise interest rate levels despite continued negative core inflation rates? That too would be unhelpful. The instrument of choice would be one that is aiming exactly at the yen exchange rates. And the first instrument one can think of is FX market interventions.
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