MUMBAI : Japan doesn't need to intervene in the currency market as the sharp depreciation in the yen won't continue, due to the changing economic environment in the United States and Japan, the country's former top currency diplomat Eisuke Sakakibara said on Friday.
Sakakibara, who is known as"Mr. Yen" for masterminding several currency interventions in the 1990s, said the fall in the yen had mostly been driven by divergent monetary policies between the United States and Japan. From the beginning of 2022, the Japanese yen fell around 21 per cent to a multi-year low of 139.39 to the dollar on July 14. It has since recovered to 133.42, triggered by a lower adjustment in U.S. yields that reflects narrowing expectations for policy divergence between the Fed and the Bank of Japan , Mizuho strategists wrote.
Yen vs inflation: https://fingfx.thomsonreuters.com/gfx/mkt/lbvgnexrgpq/Pasted%20image%201658790034653.png