BOJ Intervention Can Only Slow Speculative Yen Weakness, Mitsubishi UFJ Strategist Says

According to Guru Club, on June 22, Daisaku Ueno, strategist at Mitsubishi UFJ Morgan Stanley Securities, stated that Japan's government can only use foreign exchange intervention to slow speculative yen weakness. He noted that as long as the positive-negative real interest rate gap between the U.S. and Japan persists, currency intervention cannot permanently suppress yen selling pressure, which is fundamentally driven by investment decisions and capital flows reflecting structural economic differences. Japan's Finance Minister Koyuki Katayama said the government stands ready to take appropriate forex market action if necessary.
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