JPY: Prime Minister Kang threatened even more intervention if necessary

Against the background of signals from the Fed about the potential additional quantitative easing in the coming months, the dollar returned to his booth, much to the dismay of the Ministry of Finance and the Bank of Japan. In truth, a couple of dollar / yen slipped so slowly during yesterday's trading session due to the forthcoming meeting of the Fed, and immediately plunged to 85.0 after the announcement of results.


Probably, the Bank of Japan indicated its presence in the market over the last few hours in order to prevent falling below 85.0. Prime Minister Kang threatened even more government intervention, if necessary, and taking into account the policy of "shock and awe" of the Bank of Japan last week, no one doubts his current determination. However, if the dollar continues to fall, namely, that, judging by everything, and seek U.S. officials, the Bank of Japan will be very difficult to defend a certain course in a pair of dollar / yen.

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