Rates as of 0630 GMT

Market Recap

JPY keeps sinking USDJPY keeps moving higher! Verbal intervention from Bank of Japan Gov. Kuroda and Japan Finance Minister Suzuki temporarily reversed the move during Tokyo time but the pair recovered during the New York session and has since moved higher to trade over 128 for the first time in 20 years May 14, 2002.

In response to questions in Parliament, Gov. Kuroda said, Recent yen moves have been very rapid. That can cause trouble for companies when they make their business plans and we will need to take into account negative factors like these. He stressed the need to closely watch recent yen depreciation, which is often a code word for get ready to intervene. Finance Minister Suzuki also weighed in during the same parliamentary session as he reiterated his view that excessive and disorderly swings in the currency a not desirable. He didnt make any comments about intervention not that he would have anyway.

JPY temporarily recovered USDJPY moved lower on the comments, but the impact gradually wore off.

In the past, the Ministry of Finance operating through the Bank of Japan has intervened to buy JPY i.e. to strengthen the currency when USDJPY was as low as 121. Its major JPYbuying operation was in April 1998 at 128, which suggests that they could be getting ready for another bout of intervention.

But of course this is using the nominal value of the yen against the dollar, not the real value. Since then Japans inflation has…