The Japanese Ministry of Finance's recent monthlong pause on foreign-exchange intervention was likely a strategic one rather than an approval of a weaker yen, says SMBC Nikko Securities economist Junichi Makino. The finance ministry likely judged that it would be wiser to pause currency intervention because expectations for higher U.S. rates would diminish the effectiveness of any intervention, Makino says. MOF data show it conducted no yen-buying operations between May 28 and June 26. The dollar was last trading at 162.71 yen. (megumi.fujikawa@wsj.com)
Dow Jones Newswires
Japan Intervention Pause Likely Strategic, Not Nod to Weaker Yen — Market Talk
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The Japanese Ministry of Finance's recent monthlong pause on foreign-exchange intervention was likely a strategic one rather than an approval of a weaker yen, says SMBC Nikko Securities economist Junichi Makino. The finance ministry likely judged that it would be wiser to pause currency interventio…