Japan FX: Why No Second Round Of Intervention As Yet

Citi examines why Japan has delayed a second round of FX intervention, citing IMF classification, bilateral relations with the US, and Takaichi government policies. They expect intervention to likely trigger at ¥160/$-¥162/$.

Key Takeaways

• 1.Japan is hesitant to intervene in FX markets again due to IMF classification, US relationship sensitivities, and domestic political priorities.
• 2.The analysts estimate the range for further intervention is ¥160/$-¥162/$, with an aim to reach ¥155/$-¥157/$.

Table of Contents

• IMF Exchange Rate Classification
• Importance of relationship with US
• Economic policy of Takaichi government and relevant issues
• Overall market environment
• Appendix A-1

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