{"id":1657445,"date":"2022-09-25T20:51:54","date_gmt":"2022-09-26T00:51:54","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1657445"},"modified":"2022-09-25T20:52:25","modified_gmt":"2022-09-26T00:52:25","slug":"japan-wont-intervene-to-defend-145-yen-line-in-the-sand-ex-top-fx-diplomat","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/japan-wont-intervene-to-defend-145-yen-line-in-the-sand-ex-top-fx-diplomat\/","title":{"rendered":"Japan won\u2019t intervene to defend 145 yen line-in-the-sand: ex-top FX diplomat"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">22<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fjapan-wont-intervene-to-defend-145-yen-line-in-the-sand-ex-top-fx-diplomat%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1657445&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>By Leika Kihara<\/p>\n<p>TOKYO (Reuters) \u2013     Japan likely won\u2019t intervene in the currency market to defend a line-in-the-sand such as 145 yen versus the dollar, and instead limit any further action to smoothing operations aimed at taming volatility, former top currency diplomat Naoyuki Shinohara said.<\/p>\n<div id=\"div-gpt-ad-1663871513696-art-1\">\n<\/div>\n<p>After the dollar\u2019s spike to near 146 yen, Japan intervened in the currency market on Thursday to buy yen for the first time since 1998. Finance minister Shunichi Suzuki signalled readiness to step in again if yen moves become too volatile.<\/p>\n<p>Shinohara, who oversaw Tokyo\u2019s currency policy during the Lehman crisis in 2008, said any further yen-buying intervention will be limited in scale given Japan\u2019s need to avoid drawing criticism from G7 advanced nations.<\/p>\n<p>\u201cIt\u2019s unlikely Japan will continue intervening to defend a certain line, such as 145 yen to the dollar,\u201d said Shinohara, who retains close ties with incumbent policymakers.<\/p>\n<p>\u201cIt\u2019s impossible to reverse the market\u2019s broad trend with intervention alone,\u201d he told Reuters in an interview on Saturday. \u201cThe most authorities can do is to soothe markets when currency moves become very volatile.\u201d<\/p>\n<p>The dollar slid to near 140 yen shortly after Thursday\u2019s intervention, but bounced back above 143 yen by Friday. It stood at 143.320 yen in early Asia trade on Monday.<\/p>\n<p>The United States likely did not criticise Japan\u2019s action on Thursday since Tokyo described it as countering \u201cexcess volatility,\u201d which the G7 agrees could hurt growth, he said.<\/p>\n<p>But Washington will likely voice opposition if Tokyo repeatedly steps into the market, or gives the impression it is preventing the yen from falling below a certain level, said Shinohara, who also served as deputy managing director at the International Monetary Fund until 2015.<\/p>\n<p>The yen has hovered around 24-year lows against the dollar as investors focused on the widening policy divergence between the U.S. Federal Reserve\u2019s aggressive interest rate hikes and the Bank of Japan\u2019s (BOJ) pledge to maintain ultra-low rates.<\/p>\n<p>Tokyo\u2019s intervention came shortly after the yen\u2019s dive triggered by the BOJ\u2019s decision to keep ultra-low rates, and governor Haruhiko Kuroda\u2019s post-meeting comments that rates likely won\u2019t rise for several more years.<\/p>\n<p>The yen\u2019s downtrend will be hard to reverse as long as the BOJ maintains ultra-low rates, Shinohara said.<\/p>\n<p>\u201cKuroda appeared determined more than ever before to maintain ultra-easy policy, which is tantamount to declaring the BOJ will keep pumping yen to markets,\u201d Shinohara said.<\/p>\n<p>The BOJ\u2019s dovish stance contradicts the goal of the government\u2019s yen-buying intervention, which seeks to prop up the currency by mopping up yen from the market, he said.<\/p>\n<p>\u201cJapan is stepping on the accelerator and the brakes at the same time. When you do that with your car, you either damage the brakes or lose control of your steering wheel,\u201d Shinohara said.<\/p>\n<p>\u201cI don\u2019t think Japan can keep doing this for too long.\u201d<\/p>\n<p> (Reporting by Leika Kihara; Editing by Sam Holmes)<\/p>\n<p><a href=\"https:\/\/www.oann.com\/uncategorized\/japan-wont-intervene-to\/attachment\/illustration-picture-of-japanese-yen-banknotes-6\/\"><img decoding=\"async\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/09\/tagreuters.com2022binary_LYNXMPEI8P007-BASEIMAGE.jpg\" alt=\"tagreuters.com2022binary_LYNXMPEI8P007-BASEIMAGE\" \/><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>By Leika Kihara TOKYO (Reuters) \u2013 Japan likely won\u2019t intervene in the currency market to defend a line-in-the-sand such as 145 yen versus the dollar, and instead limit any further<\/p>\n","protected":false},"author":66,"featured_media":1889205,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1657445","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_finder_url":"https:\/\/www.oann.com\/business\/japan-wont-intervene-to\/?utm_source=rss&utm_medium=rss&utm_campaign=japan-wont-intervene-to","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1657445","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/66"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1657445"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1657445\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1889205"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1657445"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1657445"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1657445"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}