DBS: Japan may be adopting a new foreign exchange intervention strategy

Odaily Planet Daily News DBS Group Research Senior FX Strategist Philip Wee said in a commentary that Japan may be adopting a new foreign exchange intervention strategy. There are rumors that the Japanese Ministry of Finance may turn to undisclosed covert currency intervention.

Wee said that such intervention could exacerbate market volatility today as U.S. bond and stock markets experience thin liquidity due to the Independence Day holiday. He also pointed out that Japan's new strategy appears aimed at shifting market sentiment from skepticism to caution. (Jinshi)