FX Week

Intervention in Japan likely to continue

Japan spent ¥2 trillion on currency markets intervention throughout July, and this spending is set to continue in order to maintain a target of 120 yen per dollar, said Simon Derrick, chief currency strategist at Bank of New York in London.

Cycle of pressures

In part, a cycle of pressures is behind the intervention mentality: on the one hand, there is the need for Japan to maintain a competitive international advantage in the export market via a weaker yen. But at the same time, foreign inves