Yen Slumps to 2023 Low as Intervention Debate Grows

The transcript discusses the potential for intervention in the dollar-yen exchange rate, particularly when it reaches certain levels like 146 or 150. It provides historical context on interventions, explaining how traders react and test the limits set by the Ministry of Finance. The discussion includes market dynamics, such as the impact of US yields, and predicts future interventions by the Bank of Japan (BOJ) as the market continues to test the Ministry's capacity to intervene.

What is the historical context of interventions in the dollar-yen exchange rate?

• They are rarely considered by the Ministry of Finance.

• They are a new phenomenon.

• They have been used historically.

• They are only used in emergencies.

How do traders typically react to potential interventions in the market?

• They immediately sell their holdings.

• They avoid trading altogether.

• They test the market's limits.

• They follow the Ministry of Finance's lead.

What is the impact of verbal intervention on the market?

• It has a limited impact.

• It causes immediate market panic.

• It leads to a decrease in trading volume.

• It has a strong and lasting effect.

What is the market's expectation as the dollar-yen rate approaches a critical level?

• The market expects a decrease in the dollar-yen rate.

• The market anticipates a stable rate.

• The market anticipates intervention.

• The market expects no intervention.

Is there a clear threshold for when the Ministry of Finance will intervene?

• Yes, it is clearly defined.

• No, there is no clear threshold.

• No, it is decided by the traders.

• Yes, it is announced publicly.