Eisuke Sakakibara, renowned as ‘Mr. Yen’, has cautioned that Japan is contemplating intervention in the currency market if the yen approaches the 150 threshold against the US dollar, with heightened concerns emerging at the 155 level. Sakakibara, currently at the helm of the Institute for Indian Economic Studies, conveyed these insights during remarks made on Thursday.
Sakakibara further suggested that Japan may be able to endure a weaker yen but will closely monitor any alterations in the policies of the US Federal Reserve. He anticipates a shift in the yen’s strength in response to adjustments in US policy.
Drawing on historical precedents, Sakakibara harkened back to interventions carried out last year, where approximately $60 billion were expended when the yen was oscillating between the 146 and 152 marks. He anticipates a recurrence of similar expenditures in the future should the yen’s value continue to surge.
Looking ahead, Sakakibara pointed out prospective changes that could materialize following the December meeting of the Federal Reserve. Furthermore, he highlighted the possibility of interest rate hikes in Japan next year. These variables are expected to wield significant influence over the currency’s valuation and could potentially trigger interventions akin to those observed in the past.
Eisuke Sakakibara, renowned as ‘Mr. Yen’, has cautioned that Japan is contemplating intervention in the currency market if the yen approaches the 150 threshold against the US dollar, with heightened concerns emerging at the 155 level. Sakakibara, currently at the helm of the Institute for Indian Economic Studies, conveyed these insights during remarks made on Thursday.
Sakakibara further suggested that Japan may be able to endure a weaker yen but will closely monitor any alterations in the policies of the US Federal Reserve. He anticipates a shift in the yen’s strength in response to adjustments in US policy.
Drawing on historical precedents, Sakakibara harkened back to interventions carried out last year, where approximately $60 billion were expended when the yen was oscillating between the 146 and 152 marks. He anticipates a recurrence of similar expenditures in the future should the yen’s value continue to surge.
Looking ahead, Sakakibara pointed out prospective changes that could materialize following the December meeting of the Federal Reserve. Furthermore, he highlighted the possibility of interest rate hikes in Japan next year. These variables are expected to wield significant influence over the currency’s valuation and could potentially trigger interventions akin to those observed in the past.
