Nikko Securities: Japan's suspension of foreign exchange intervention may be due to strategic considerations, not an implicit acceptance of the yen's depreciation

Golden Ten Data reported on July 1 that Junichi Makino, economist at SMBC Nikko Securities, stated that Japan's Ministry of Finance recently paused foreign exchange interventions for as long as one month, most likely out of strategic considerations rather than acquiescence to the yen's depreciation. Makino believes that, given market expectations for rising US interest rates, any intervention measures would be less effective, and the Ministry of Finance may view suspending forex intervention as the wiser approach. Data from Japan's Ministry of Finance shows that between May 28 and June 26, the department did not conduct any yen-buying operations.