DWS: UNITED STATES-JAPAN INTERVENTION IN THE JAPANESE DOLLAR EXCHANGE, THE IMPACT OF WHICH SHOULD NOT BE UNDERESTIMATED

On 4 August, Lilian Haag, Senior Portfolio Manager and stock team manager of DWS, stated that Japan had joined forces with the United States to intervene in the market for the first time since the Asian financial turmoil in 1998, and that the G7 group had joined forces to curb the excessive appreciation of the yen following the 2011 earthquake in Japan. This day, US-Japan officials made a clear statement to the market that they would continue to defend the yen and warned against the continued expansion of arbitrage. The impact of foreign exchange interventions, which, according to past experience, have not always been sustainable, should not be underestimated, either in this operation or at a turning point in United States-Japan monetary cooperation. The Japanese yen's weakness has not only heightened the market's concern about Japanese exporters benefiting from low exchange rates, but has also been of concern to the Trump government. At the same time, the depreciation of the yen has put pressure on the Central Bank of Japan to raise interest rates early。