Column: Japan-US monetary policy changed the tide, cycle depreciated dollar and yen appreciated = Mr. Daisaku Ueno

2024/8/6 12:28 PM GMT+9 (some excerpts)

The depreciation of the dollar and appreciation of the yen are accelerating in the foreign exchange market in midsummer. At the Tokyo Market on August 5, there was a scene where it temporarily reached the 141 yen range, reaching a low for the first time in about 7 months. It peaked at the high price of 161 yen 95 yen for the first time in about 38 years recorded on July 3, and it plummeted by over 20 yen in just about 5 weeks. What the hell is going on?
There are three reasons why the depreciation of the dollar and the appreciation of the yen progressed at a breakneck speed.
First, the dollar sales intervention with a total value of 5.5 trillion yen carried out by Japan's Ministry of Finance for 2 consecutive nights from July 11 to 12 absorbed yen sales demand quite a bit in advance due to Japan's trade service deficit, open foreign securities investment, excess outflow of foreign direct investment, etc., and it seems that it played a role in setting the stage for the sharp decline in the dollar/yen exchange rate that will open later.