Mitsubishi UFJ: Intervention Can Only Suppress Speculative Yen Weakness

On June 22, Daisaku Ueno, a strategist at Mitsubishi UFJ Morgan Stanley Securities, stated that the Japanese government can only suppress speculative yen weakness through foreign exchange market intervention. "As long as there is a persistent positive and negative real policy interest rate differential between the U.S. and Japan, the 'magic' of foreign exchange intervention will struggle to permanently suppress the selling pressure on the yen. This pressure is essentially driven by investment decisions and actual demand generated by the economic activities of Japanese companies and individuals, and has structural characteristics," he pointed out. Japanese Finance Minister Shunichi Suzuki stated that the government is prepared to take appropriate action in the foreign exchange market when necessary.