A Fed Policy to Promote Dollar Depreciation

September 24, 2010

Since mid-2007, worsening global economic news had tended to support the dollar, which benefited from inflows of funds seeking safe parking.  That metric broke down in the third calendar quarter, which ends next Thursday.  Thursday will also mark the midpoint of the Japanese fiscal year. Many recent developments had potential to promote risk-reducing trading strategies.  […] More

Unsuccessful Japanese Intervention

September 24, 2010

It is believed that the Bank of Japan did a second round of forex intervention, selling yen in follow-up to the massive operation conducted on September 15.  Unlike then, the central bank did not comment on or confirm that it had acted.  Market participants were not surprised by the action, as the yen had crept […] More

Two Days After Japan’s Intervention: What Now in Foreign Exchange?

September 17, 2010

Japan’s intervention on September 15 broke several rules.  The operation was taken against the wishes of Japan’s allies in Europe, Asia and North America.  Japan has deflation, but other economies have lower-than-desired inflation and price trends that continue to slow.  All governments would like a softer exchange rate but know that is an impossibility.  So […] More

Now and Yen

August 26, 2010

Official concern about yen strength is palpable and mounting by the day.  Not since the last intervention in March 2004 has the possibility of government sales of yen been considered so carefully and so publicly.  This week the yen touched a record high of 105.44 per euro, and the currency’s high of 83.59 per dollar […] More