: But Tokyo does not have as clear a plan on how to address an unwelcome yen rise that may be triggered by a Brexit, since the currency is also seen as a safe haven at times of heightened risk, according to The Japan Times. Japan has not got any consent from its Group of Seven counterparts on a yen-selling currency intervention. The Bank of Japan is ready to offer dollar funds to domestic banks via auctions if a so-called Brexit scares investors into hoarding the U.S. currency, said officials with direct knowledge of preparations. Solo intervention by Tokyo is quite difficult and probably won't be effective when other countries also want their currencies to stay weak, said one of the officials. Brexit is the biggest near-term risk as it could trigger a yen spike, said another official on condition of anonymity. That means Japanese officials have little choice but to talk down currency volatility, the officials say, although there is no guarantee it can keep yen bulls at bay.
(news.financializer.com). As
reported in the news.
Tagged under , topics.