Two hours ago Bloomberg reported Yen Climbs to Postwar Record Versus Dollar as Traders See No Intervention
About 40 minutes ago Bloomberg reported Yen Drops on Intervention; Aussie Weakens
About 10 minutes ago Bloomberg reported Yen Tumbles as Japan Sells Currency Third Time in 2011
The yen dropped as Japan stepped into foreign-exchange markets to weaken the currency for the third time this year after its gains to a postwar record threatened an export-led economic recovery.I like to watch these headlines for a bit to see where they are going. Here is a chart of the action.
“I’ve repeatedly said that we’ll take bold action against speculative moves in the market,” Japanese Finance Minister Jun Azumi said to reporters today in Tokyo after the government intervened unilaterally. “I’ll continue to intervene until I am satisfied.”
The yen sank as much as 4 percent to 78.98 per dollar and traded at 78.19 as of 11:10 a.m. in Tokyo from 75.82 in New York Oct. 28.
Yen 15 Minute Chart
Intervention Never Works
Japan has struck out twice this year on intervention efforts and numerous times before. Why should this time be any different?
Currency intervention never works. However, it may appear to work if by some lucky chance intervention came at the time the Yen was ready to reverse on its own accord.
The race to debase is back on.
Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
Click Here To Scroll Thru My Recent Post List