Fortune (August 15)
“The first U.S.-Japan joint intervention in three decades aimed at boosting the yen has come and gone without doing much to ease anxiety in currency markets.” In fact, it may have heightened concern. A recent note from Yardeni Research captured this sentiment. “The financial system right now looks like a giant Jenga tower with the yen as a load-bearing piece.”
Tags: Anxiety, Boosting, Concern, Currency markets, Financial system, Japan, Jenga tower, Joint intervention, Sentiment, U.S., Yardeni Research, Yen
Financial Times (August 10)
“The yen has given up roughly half its gains following the historic joint intervention by the US and Japan, with investors saying the lack of a ‘unified voice’ among central banks lessened its market impact.” The prevailing view is that “the intervention would be unlikely to provide lasting support unless it was accompanied by interest rate rises from the Bank of Japan” and that the intervention might have been more effective with greater international co-operation, specifically involving the ECB, which was not consulted.
Tags: BOJ, Central banks, Co-operation, ECB, Gains, Interest rate, Investors, Japan, Joint intervention, Lasting support, Market impact, U.S., Yen
