Report: Japan Ends Currency Intervention

[54anickel]

Is that Taps I hear in the background?

http://www.reuters.com/newsArticle.jhtml?type=businessNews&storyID=4679937

LONDON (Reuters) - Japan's 150-billion-pound ($273 billion) campaign to weaken the yen and strengthen the dollar has officially come to an end, the Times newspaper reported, citing sources at the Bank of Japan.
The currency intervention campaign, which has provoked criticism in Washington and deep concern in London, is thought by Japanese officials to be no longer necessary because the country's economic recovery is gathering strength, the London Times newspaper reported in its March 29 edition.

BOJ sources said that they would intervene in the markets only when there was extraordinary volatility, but made clear that the unprecedented dollar purchases of the past seven months were formally over, the paper reported.

The BOJ and Japan's Ministry of Finance will no longer buy dollars even to smooth out the sort of sudden price spikes that have prompted intervention in the past, it added.

more...

[swag]

1. Well, well, well

Will those 10-year Treasury yields finally adjust to their equilibrium levels? Will govt bond yields entice once again after a long enticement dry-spell?

Will rising interest rates be another nail in the coffin of a recovery rented from Walmart?

I see stagflation in the near future. I'm no economist, I'm just a fanboy.

[54anickel]

2. Looks like there's a bit of disagreement between BoJ and MoF

http://www.reuters.com/newsArticle.jhtml?type=businessNews&storyID=4680402

TOKYO (Reuters) - Japan's Ministry of Finance (MOF) said on Monday it would continue its foreign exchange intervention, shrugging off a British newspaper report that Tokyo would stop its massive forays into the currency market.

Japan has been intervening in accordance with a Group of Seven (G7) statement issued last month that said excessive volatility was undesirable, and that policy remains unchanged, a senior MOF official told Reuters. "We have been intervening all along based on the Boca Raton statement -- that excessive volatility and disorderly movements are undesirable -- and we will continue to do so if necessary," the official said.

Japan has conducted more than 30 trillion yen ($285 billion) of yen-selling intervention since the start of last year in a bid to rein in the buoyant yen. The yen rose to 3-1/2-year highs near 105.10 to the dollar last month, up more than 10 percent from lows near 120 set last August.

snip>

"Intervention policy is set by the Ministry of Finance. I don't know what the BOJ is saying (in the Times report) but people should ask us (about currency policy)," the official said.

[King of New Orleans]

3. Well, I guess things couldn't be anymore clearer

eom

[jamesinca]

4. The opening bell will be good on the markets tomorrow

I know you follow the SMW thread, how do you see this playing on tomorrows boards DOW, NASDAQ and S&P 500?

I personally feel they will close below 10K and 1900. I think this news will push it along. I think it may reduce the trade deficit, but not by much, most of that is with China.

[54anickel]

6. Ha! You know me - 50/50 chance. A low dollar could mean larger

profit margins for certain sectors, no? Pretty sure I read that in one of the articles posted last week.
As UIA says, now we shall see what this will truely mean. Hang on!

[UpInArms]

5. we knew this day was coming

now we shall see what it means.

[CaptainClark23]

8. I think it means

That DU's resident dollar watchers are gonna have a busy week! ;-)

[twilight]

7. Not so fast ...

Someone or something must have picked up the phone and made a call or two or three ...

The stoppers were put on this idea REAL FAST!!!!!!

"TOKYO (Reuters) - Japan's Ministry of Finance (MOF) said on Monday it would continue its foreign exchange intervention, shrugging off a British newspaper report that Tokyo would stop its massive forays into the currency market."

more here ...

http://biz.yahoo.com/rb/040328/markets_forex_japan_4.html

Crazy times! :nuke: :nuke: :nuke:

Do you really want to invest in this crap?

:dem: :kick:

[Art_from_Ark]

9. Interesting

Nikkei NET's Japanese-language website has the story about the London Times article

http://www.nikkei.co.jp/sp1/nt37/20040329AS3K2900G29032004.html

The English-language site lists a headline about the Ministry of Finance's reaction, but you have to be subscriber to access the article.

Back to exchange rate news, the Nikkei NET says that the yen momentarily reached the strongest level it has been since September 8, 2000. Apparently, the Times article about the Bank of Japan ending currency intervention spurred a wave of dollar selling.

http://www.nikkei.co.jp/news/market/20040329m2d1f2900229.html