DBS: Japan May Be Adopting a New Forex Intervention Strategy

Golden Ten Data reported on July 3 that Philip Wee, Senior FX Strategist at DBS Group Research, stated in a commentary that Japan may be adopting a new foreign exchange (FX) intervention strategy. There are rumors that the Japanese Ministry of Finance may be shifting to covert, unannounced FX interventions. Wee noted that, with liquidity thin in the US bond and equity markets due to the Independence Day holiday today, such interventions could increase market volatility. He also pointed out that Japan's new strategy appears aimed at shifting market sentiment from skepticism to caution.