BUZZ-COMMENT-Trump won't object if Japan intervenes to lift yen
Dec 27 (Reuters) - - U.S. President-elect Donald Trump is unlikely to complain if Japan decides to intervene to strengthen the yen, either before or after his inauguration next month.
Trump wants countries to buy more from the United States, so anything which makes U.S. exports more competitive should please him.
Japan Finance Minister Katsunobo Kato reiterated on Friday concerns over a sliding yen, saying Japan "will take appropriate action against excessive moves".
Kato's jawboning came hours after USD/JPY scaled an EBS five-month peak of 158.09.
The risk of yen-buying intervention from Japan will increase if USD/JPY vaults 160. Spot was last at or above 160 in July - when its rise to a 34-year high just shy of 162 prompted yen-buying intervention from Japan.
Trump will be inaugurated on Jan. 20, four days before the next interest rate decision from the Bank of Japan.
Related comments: nL1N3NK0CU nL1N3NP00Y
For more click on FXBUZ
(Robert Howard is a Reuters market analyst. The views expressed are his own)
((robert.howard@thomsonreuters.com))
Related Articles
[Reuters Analysis] Why South Korea cannot make the same US trade deal as Japan
South Korea trade talks with U.S. have stalled due to FX issuesCurrency market too small for $350 bln fund, unlike Japan's caseHopes grow that bilateral currency swap line may offer solution By Jihoon Lee and Yena Park SEOUL, Sept 15 (Reuters) - South Korea's negotiations with the U.S. on...
[Reuters Analysis] US economy braces for twin housing, labor market headwinds: McGeever
By Jamie McGeeverORLANDO, Florida, Sept 15 (Reuters) - The U.S. labor market appears to be deteriorating rapidly just as the country's housing market is also creaking, two negative forces that risk feeding off each other and smothering economic growth.On the labor side, the latest sweep of data ...
September Global Central Bank Divergence: How Will U.S. Stocks and Forex Markets Move?
TradingKey - Despite the divergence in monetary policies among major global central banks in September (with the Federal Reserve cutting rates while the European Central Bank, Bank of England, and Bank of Japan maintain steady rates), we expect the policy directions of the Fed, ECB, and BoE to...
U.S. September Rate Decision Preview: What It Means for Bitcoin and Could It Spark a New Rally?
Bitcoin’s rally stalls ahead of the Fed meeting — has the bullish momentum already been priced in?
Fed to Cut Rates: All Asset Prices Up!
TradingKey - The Federal Reserve is almost certain to restart its interest rate cut cycle on 17 September this year. After in-depth research, we have concluded that cryptocurrencies, the broader U.S. stock market, and short-term U.S. Treasury bonds will all go up.
