It is the BoJ, and not the Ministry of Finance, who holds the key to a sustainable stabilization of the Yen – Commerzbank

US Dollar strength pushes USD/JPY above 150.00. Commerzbank economists analyze the pair's prospects.

Risk of intervention?

If a real recovery of the Yen is desired, a real change of course in monetary policy would have to occur. And I'm not talking about a symbolic end to the symbolic negative rate policy. But why should that happen as long as the BoJ is firmly convinced that inflation will fall back below the 2% target?

If the currency market really gets carried away with a symbolic rate hike and interprets it as something positive for the Yen or the start of a rate cycle, then that would be a better tool to strengthen the Yen than intervention. In short, it is the Bank of Japan, and not the Ministry of Finance, that holds the key to sustainable stabilization of the Yen.

Source: Fx Street

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