Agency: United States dollar to Japanese yen exchange rate expected to fluctuate within higher and wider zones

ON 28 JULY, TWO EXPERTS FROM LGT ASIA PRIVATE BANK REPORTED THAT THE UNITED STATES DOLLAR-JAPANESE YEN TRADE ZONE WOULD MOVE UPWARDS AND BE EXPANDED TO 157 TO 165 YEN, COMPARED WITH 155 TO 160 YEN PREVIOUSLY. ACCORDING TO THE EXPERT, THIS CHANGE REFLECTS A NUMBER OF FACTORS, INCLUDING “THE HUGE SPREADS BETWEEN THE UNITED STATES AND JAPAN, THE UNCERTAINTY OF EXCHANGE RATE INTERVENTION AND THE RISE IN JAPAN'S FISCAL RISK”. AT THE SAME TIME, THEY NOTED THAT “JAPAN MAY ADOPT AN UNEXPECTED STRATEGY TO REDUCE ORAL INTERVENTIONS BEFORE ACTUAL EXCHANGE RATE INTERVENTIONS TAKE PLACE. THIS WILL RESULT IN A GREATER AND MORE UNPREDICTABLE FLUCTUATION OF THE UNITED STATES DOLLAR AGAINST THE JAPANESE YEN.”