Nikkei falls over 2% on jitters over stronger yen

Monday 14th September, 03:45 PM JST

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10 Comments

Angelo at 03:49 PM JST - 14th September

So when will the government start buying US$ to bring the Yen's value down?
Yelnats at 04:02 PM JST - 14th September

Compare big mac costs and see if the yen really is too strong.
Klein2 at 04:45 PM JST - 14th September

Angelo. You're kidding right? Start? I think they have been buying regularly for 20 years. The dollar is free falling. I am sure that BOJ is buying cash and bonds and whatever it can every day, but what are you gonna do? The fed is printing it faster than BOJ can buy it, and you can bet that the Saudis and Chinese are not picking up the slack these days.
davidattokyo at 05:07 PM JST - 14th September

Actually Japan hasn't been intervening in the markets in recent years, and the DPJ seems to be happier with the idea of a stronger yen than the business-backed LDP was. Unless the volatility of the currency movements start getting really obscene, I would be surprised to see this situation change.

This might happen though if the USD breaks below 87 and starts to free fall head towards an all time low...
Farmboy at 07:11 PM JST - 14th September

Actually Japan hasn't been intervening in the markets in recent years...

Well they spent over 300 billion around 2003 or thereabouts, and had very little effect, so they probably just don't think it will work. They may get desperate, though, if, as you say, USD goes below 87 or so.
DeepAir65 at 07:31 PM JST - 14th September

It's not just about the dollar being week but the yen being strong as the yen is stronger against most (if not all - can't be bothered to research) developed currencies like GBP, EUR, AUD etc
Roppichan at 02:15 AM JST - 15th September

Klein2, right you are mate and what does davidattokyo mean by not intervening ? Buying bonds and dollars are not enough ? I personally do not think that the currencies are of much importance. Gold worries me and the new hype in the markets. Yeah, all is over and everything looks sweet. The banks still are very weak, the governments have still no clue and the common people still believe the same old bullshit news. Boys, I bought a farmhouse with quite some land for little money in Miyama (Kyoto) and I hope I will have enough of " peace time " to enjoy it. What are you guys thinking about Gold ?
Weasel at 02:28 PM JST - 15th September

What are you guys thinking about Gold ?

That it's the next bubble to burst.
Wakarimasen at 02:31 PM JST - 15th September

Gold is the only real currency left - all the others are being devalued by excessive printing.
davidattokyo at 06:21 PM JST - 15th September

Roppichan,

"not intervening" means not entering the FX market and buying heaps of Dollars in exchange for JPY to prop USD up / push JPY down.

Japan hasn't been doing this recently; that wasn't to say it hasn't in the past.