Japan Not Ruling Out Forex Intervention in Case of Emergency

Japan does not rule out stepping into the currency market as an emergency step, Prime Minister Shinzo Abe said Thursday, days after U.S. President Donald Trump accused Japan of devaluing the yen.

Speaking at a session of the House of Representatives Budget Committee, Abe said, however, that no intervention in the currency market has been carried out under his administration, which was launched in December 2012.

“We don’t rule it out. It’s possible as an emergency response,” Abe told the committee, referring to the possibility of a currency intervention.

Trump told a meeting of pharmaceutical executives in Washington on Tuesday that Japan and China are playing the money market. “They play the devaluation market and we sit there like a bunch of dummies,” he added.

Japanese officials were quick to deny his accusations, arguing that the Bank of Japan’s monetary policy is intended to pull the Japanese economy out of deflation and not to devalue the yen. They said that currency moves are market-driven and Japan is not manipulating them.

via Mainichi

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza