Japan Should Abandon Intervention Plans

Lots of rumors as to the size of possible new repurchases of government securities by Boj next week and the setting of growth and interest rates targets, as in the case of US, have sent yen spiraling down in the last couple of weeks. It is quite possible that Europe will fall into a liquidity trap in the next few weeks, banks at risk and Spanish provinces have no way to gain access to ESM intervention. Any intervention to further weaken yen would result in yet more pain in Europe, without helping Japanese exports to the region.

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