DBS: Japan May Be Adopting A New Foreign Exchange Intervention Strategy

A senior FX strategist at DBS Group Research said Japan may be adopting a new strategy for foreign exchange intervention. According to Jin10, Philip Wee, a senior FX strategist at DBS Group Research, wrote in a commentary that there were rumors Japan’s Ministry of Finance may be shifting toward undisclosed, covert currency intervention. Wee said that with U.S. bond and stock markets experiencing thin liquidity today due to the Independence Day holiday, such intervention could intensify market volatility. He added that Japan’s new approach appeared aimed at shifting market sentiment from skepticism to caution.