Agency: or has created opportunities for Japanese intervention in the market

On 31 July, the TS Lombard economist, Rory Green, stated that the statement made yesterday by Federal Reserve Chairman Walsh, after maintaining interest rates unchanged, was interpreted by the market as a dove-off, which could create an opportunity for the Central Bank of Japan to support the yen. The current market speculates that Japan’s official intervention in the exchange market may be behind the drop of about 2.5 per cent in the United States dollar to the Japanese yen. Green stated that the position of the Fed ' s doves might provide a good opportunity for the Treasury of Japan to implement a coffer intervention. At the same time, he pointed out that Japan ' s previous coffers intervention had often been accompanied by higher central bank interest rates. Green stated: “If the Central Bank of Japan acts tomorrow (a hike), the market will still be surprised, but this meeting is no longer unsuspecting”