David Roche, a veteran investor in Huitong Financial App, said Japan is not looking for a strong yen, but wants the yen to be relatively stable.
The yen has been on a roller coaster, and the dollar fell below 160 against the yen last week for more than 30 yearsWemixgamesnftThe largest decline. Since then, the dollar has strengthened on speculation that the Japanese authorities will intervene twice.
David Roche, president and global strategist of Independent Strategy, said in an interview: "the Japanese goal is not to make the yen particularly strong. I think their goal is a relatively stable yen-they don't want the yen to fall any moreWemixgamesnftYes. "
Japan's action is to "avoid causing inflation, which will undermine the prestige of the governor of the Bank of Japan".
Despite warnings from the Japanese authorities, the yen's weakness continued after the Bank of Japan made its monetary policy decision in April. It is reported that Japanese authorities could have spent about $60 billion to prop up the yen after a sharp fall in the yen last week.
According to the minutes of the latest policy meeting released by the Bank of Japan on Thursday, the central bank is concerned that a sharp weakness in the yen could push up import prices.
"the recent depreciation of the yen and rising prices such as crude oil have begun to affect producer prices through higher import prices," members of the Bank of Japan's policy committee said at the last meeting, which ended on April 26. "
"while the depreciation of the yen may depress the economy through cost-driven price increases in the short term, it could push up potential inflation in the medium to long term," members said. "
As expectations of Fed interest rate cuts are postponed and the dollar continues to strengthen, so does the Australian dollar.
Japan "cannot have a policy that really leads to a stronger yen unless monetary policy is tightened," Roche said, adding that this would involve raising interest rates by at least 50 basis points and allowing "non-sterilisation intervention" in the yen. In other words, it reduces the domestic money supply. As far as I know, statistically, they [the Bank of Japan] have not taken any action. "
Daily chart of USDJPY at 13:53 Beijing time on May 9th, USDJPY was at 155,Wemixgamesnft. 62
