Yen promises 24-hour intervention

Japan’s currency officer Masato Kanda said they were ready to intervene in money markets 24 hours a day if necessary. Despite Kanda’s statements, the yen continued to lose value. Japan’s top executive responsible for currency policies, Deputy Finance Minister Masato Kanda, said they were ready to intervene in money markets 24 hours a day if necessary. Speaking this morning when the dollar/yen exchange rate was hovering near the psychological level of 160, Kanda said, “If there are fluctuations in the currency, this will have a negative impact on the country’s economy. In the event of excessive movements based on speculation, we are ready to take appropriate measures.” Although the losses in recent days have been gradual, the yen has already given back most of the gains it made in the interventions anticipated on April 29 and May 1. “We think the next round of BOJ intervention will come after the dollar/yen triggers buy orders above the 160.20 level it reached in late April,” said Tony Sycamore, market analyst at IG Australia. Sycamore said the yen’s decline against the dollar last week was driven by stronger-than-expected U.S. PMI data and the BOJ’s reluctance to offer a detailed plan to reduce bond purchases. Meanwhile, Japanese retail investors have increased their long positions in yen through forward contracts since May, according to Tokyo Financial Exchange Inc.