( Observer Network ) Recently, the Japanese government and central bank are making every effort to carry out the "Japanese yen defense battle". Japan Kyodo News html disclosed on the 224th that the Japanese government and the central bank intervened in the foreign exchange market late at night without official announcement last Friday (21st), with the amount of up to US$37 billion (about RMB 270 billion), setting a record for the highest investment in the yen intervention. However, the situation of the selling of the yen has not changed, and the market expects that the Japanese authorities will continue to intervene in the foreign exchange market.
htmlOn September 22, the Japanese authorities intervened in purchasing Japanese yen for the first time after about 24 years. The amount of intervention may be about 2.8 trillion yen (about 137 billion yuan), setting a single-day high. On October 21, after setting a 32-year low record for the Japanese yen exchange rate (1 US dollar to 151.94 yen), the Japanese authorities intervened again, and there was no official announcement.Kyodo News learned from the estimates of market-related personnel on the 224th that the exchange rate intervention of buying yen for US dollars implemented by the Japanese authorities on the 21st may reach a maximum of 5.5 trillion yen (about 270 billion yuan), and the intervention of buying yen may set a record.
22 Japanese exchange rate card. Picture丨Kyodo News
. According to Japan Economic news report, before the intervention on the 21st, there was news in the market that " US Federal Reserve (FRB) will reduce the hike rate after consultation at the US Federal Open Market Committee (FOMC) meeting in November." The US interest rate has turned into a downward trend. The Japanese authorities seem to have initiated intervention in order to seize the opportunity of the yen appreciation.
At around 11:50 pm local time on the 21st, a large number of transactions were traded at a price of around 150 yen. By around 0:15 am on the 22nd, the yen appreciated to 148 yen. By 1 o'clock, it reached the 144 yen mark, which appreciated by about 7 yen compared with the low of 151.94 yen set around 9 pm on the 21st.
report mentioned that the financial officer of the Japanese Ministry of Finance, who was the intervention commander, Kanda Shinto left the office after get off work in the early morning of the 22nd. That night, the office of the Ministry of Finance's foreign exchange market lesson and the Japanese bank lesson foreign exchange lesson lit up. However, after spending $50 billion in two consecutive times to intervene in the foreign exchange market, the situation of selling the low-interest yen has not changed, and the transaction selling the yen on the 24th became active again. At the same time, according to data compiled by Bloomberg, more than four-fifths of the yen's 23% decline against the US dollar this year have been in overseas markets.
In addition to overseas investors, the " Watanabe Madam " (individual investors) who are engaged in arbitrage trading also got their wishes. Data picture | Bloomberg
On Monday (24th), it fell to the range of 1 US dollar to 149.5 yen to 150 yen and then rose to the range of 1 US dollar to 145 yen. The market generally believes that this is the third time the Bank of Japan has intervened in the foreign exchange market, and the scale is expected to be about 1.9 trillion yen (about 13 billion US dollars/94.4 billion RMB). The US dollar closed up 0.90% against the yen on the same day to 148.94. But Japanese foreign exchange officials remained silent about the intervention again, refusing to express whether the authorities interfered with the foreign exchange market to support the yen.
24 later, Kanda Masato only told the media on the phone, "We will take corresponding measures to cope with excessive fluctuations in the foreign exchange market 365 days a year, 24 hours a day." CICC previously believed that the Japanese authorities may deliberately refuse to announce the official announcement to increase the opacity of foreign exchange intervention, so as to allow the market to be alerted to the possibility of foreign exchange intervention and increase its deterrent force at any time.
24 Japanese yen exchange rate against the US dollar once plummeted. Picture丨North Economic News
On the other hand, US Treasury Secretary Yellen said he was not aware of Japan's interference in the foreign exchange market. Japan has not reported the relevant situation so far, because in the past, Japan would notify the Ministry of Finance in advance to conduct foreign exchange market intervention.
At present, the market expects that the Japanese authorities will intervene in the foreign exchange market again on the 25th.
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