![]() ![]() ![]() The bond market, which precipitated the yen's slide, may ultimately give Japan's authorities reason to hold off on pressing the intervention button. The price of Brent is now around $88, and those complaints over imported fuel have faded into memory.įrom a purely macroeconomic perspective, Kichikawa said, officials have no imperative to prevent yen weakness before 150, which is consistent with the mild inflationary pressure that the BOJ aims to foster. "Not only economically, but also politically, yen weakness at that time was a problem, and it clearly impacted the government's approval rating," said Masayuki Kichikawa, chief macro strategist at Sumitomo Mitsui DS Asset Management in Tokyo. Japan spent more than 9 trillion yen ($62 billion) intervening in currency markets last year to arrest the yen's decline, buying yen in September and October - first at levels around 145 and again at a 32-year low just short of 152.Īt the end of August last year, the price of Brent crude oil was about $105 per barrel, and complaints about the pain from imported energy prices were in the Japanese press on a daily basis.
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