Can Repatriation Flows Save the Japanese Yen?
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GPIF repatriation flows are similar to FX intervention and will be just as ineffective
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4 itemsForeign exchange intervention cannot save the yen; pension fund repatriation to Japan could become the decisive weapon to halt its depreciation—at the cost of triggering global equity and bond market turmoil. - 富途牛牛
Official FX intervention can't save the Yen
Japanese yen starting to slip away again, will Tokyo officials step in?
The desk views the recent depreciation of the Japanese yen as a significant concern, particularly given the Bank of Japan's (BOJ) limited success in its intervention efforts. Per the full note from Justin Low at investinglive.com, Japan has reportedly spent over $60 billion on market interventions since May, yet the yen continues to weaken, with USD/JPY trading above 157.00. This trend highlights the bearish fundamentals surrounding the yen, exacerbated by geopolitical tensions and rising costs, which complicate the BOJ's monetary policy outlook. As the market tests Tokyo's resolve, the potential for further intervention looms, but the effectiveness of such measures remains questionable given the current market dynamics.