Biggest Ever Yen Intervention – and What It Means for You!
September 20, 2010 at 09:36 AM EDT
Last week, I pointed to the challenges facing Switzerland and Japan’s currencies. As for the yen, I said that nothing short of actual intervention would relieve the pressure on its exporters. I also said that I expected it to happen. And it did. Japan intervened this week to stop the ever-rising yen, its biggest one-day intervention on record. But many in the foreign exchange market believe the effort will fail — and ultimately a strong yen will win out. I disagree. First , I can’t think of one fundamental argument that would support the case for a stronger yen. Second , Japan has every incentive to keep intervening. Remember, this is a country attempting to weaken its currency, not save it… . . . → Full Story: Biggest Ever Yen Intervention – and What It Means for You!