BNN Video - Talking Yen Intervention
March 21, 2011
I was on the Business News Network talking about intervention in Japan, whether it has been successful, Libya and the outlook for the FX market. Click on the image to access the video
Posted in 2009 japanese yen, forex blog, japan quake yen
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March 22nd, 2011 at 11:38 pm
Kathy, first I’d like to comment on the great interview. I’ve watched a few of your interviews and you always do very well, professional mannerism and well discussed topic (well researched of course as usual). Second, I’m guessing Libya is going to be the tipping point traders needed to make oil very expensive again, killing the dollar value over the Euro, step by step. Lastly with the JPY, I’m going to make an educated guess that while the short term solutions to the problem have worked, the long term solutions aren’t even close to being put on the table. In due time we will likely see the JPY fall if Japan doesn’t recover or intervene fast, sound and with long-term thinking in mind.
March 23rd, 2011 at 1:29 am
Was the G7 coordinated intervention motivated more by considerations for Japan or by a hidden agenda to mitigate the death spiral of the greenback? I suspect it was the latter in a bid to extend the greenback’s living on borrowed time. One could argue that the G7 intervention actually hurts Japan because devaluing the yen will eventually increase the Japanese cost of reconstruction, inflation, interest rates and the cost of servicing its sovereign debt.