Japan isn’t expected to interfere to protect 145 yen per dollar

Japan is unlikely to meddle in the foreign exchange market to secure the yen level, equaling to 145 per dollar. Instead, it would limit any subsequent moves to smoothing operations focused on suppressing volatility, noted Naoyuki Shinohara, a former senior currency diplomat. 

With the dollar reaching almost 146 yen, the country entered the forex market last week. This intervention took place for the first time since 1998. Shunichi Suzuki, acting as Japan’s Finance Minister, made clear their readiness to interfere in case the yen movement is highly volatile. 

“Safe to assume Japan won’t continue its line protection that is 145 yen per dollar,” mentioned Shinohara, maintaining close connections with current policymakers.

"There is no way to break the market’s overall trend with interference exclusively. So, the best method authorities are able to respond is to reassure the markets if exchange rates become extremely volatile."