Core Viewpoint - The Japanese yen has been weakening due to market expectations that the newly elected Prime Minister, Sanna Takashi, will pressure the Bank of Japan to slow down interest rate hikes, with the USD/JPY exchange rate rising approximately 5% since October 4, reaching 155.00 [1] Group 1: Government Response to Yen Depreciation - Upgrading verbal intervention is highly likely, as the Japanese authorities are closely monitoring the yen's "one-sided and severe" fluctuations, with Finance Minister Satsuki Katayama expressing heightened vigilance against the yen's volatility [2] - There is a possibility of signaling recent interest rate hikes, as concerns over the yen's depreciation may prompt Prime Minister Takashi to support raising the policy rate to 0.75% [3] - The Bank of Japan may implement interest rate hikes, with indications from Governor Kazuo Ueda suggesting a gradual adjustment of monetary easing, potentially leading to a rate increase in December or January [4] Group 2: Market Intervention Considerations - The likelihood of direct market intervention is low, as the last intervention occurred in July 2024 when the yen hit a 38-year low against the dollar, and current government members do not show significant concern over yen depreciation [5]
日本当局再迎“日元保卫战”！升级口头干预成可能性最高选项