Standard Chartered: The Japanese authorities are very close to intervening in the depreciation of the yen

Steven Englander, head of global G10 FX research and North America macro strategy at Standard Chartered Bank, said the Japanese authorities were "very, very close" to intervening in the yen. "They've talked about the political consequences [of the yen's depreciation], and no one is sitting back hoping for the yen's depreciation. "The yen is currently at a multi-decade low. "The purpose of the potential intervention is to buy time for the Japanese authorities to start cutting interest rates or the Bank of Japan to raise interest rates modestly. He further noted that the last time the Japanese authorities intervened in the yen was in 2022, when "it worked quite well", although investors were initially skeptical about the effectiveness of such monetary interventions.