JPY: Predicted verbal intervention filled the airwaves – RBC CM

Sue Trinh, Senior Currency Strategist at RBC Capital Markets, notes that the USD/JPY spiked above 101.00 in early Asia, putting further distance between spot and the 100 level as predicted verbal intervention filled the airwaves.

Key Quotes

“The Chief government spokesman, Suga, said that recent FX moves have been nervous and if this continues, the government is ready to take the appropriate action. EconMin Ishihara said he was closely watching FX market moves but wouldn’t comment on specific FX levels. Japan FinMin Aso said that he doesn’t think the BoJ’s new framework will have an immediate impact on the bond market and the government and BoJ must work together on fixing Japan’s structural problems. Japanese bank stocks have given back some gains (-1.5%) and are struggling to build on the post-BoJ rally.”