Japan will have to get its timing right in future interventions to keep the yen from rising to record levels, Reuters reports. Tokyo may be unable to inject high amounts of yen into the market without backing from international partners, available in the past. That is because this time the yen is rising against a dollar weakened by concerns about the U.S. economy.
The country may instead aim for a “shock” effect by carefully choosing the moment to step in as inaction would earn disfavor from exporters at home. Its central bank may even consider further easing of the monetary policy if economic recovery seems to be under threat.
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