BlackRock CTO (CIO) Rick Rieder (リック・リーダー) said that restoring the yen requires not only foreign-exchange intervention but also a hawkish stance from the Bank of Japan. The dollar-yen exchange rate is approaching ¥160, and nearly half of the gains from coordinated intervention have been erased.
Rick Rieder (リック・リーダー), BlackRock’s global fixed-income CIO, said that large-scale intervention would need to continue to restore the yen. He said foreign-exchange intervention was not “the most sustainable” means and noted that policymakers need to signal a hawkish stance to the market.
The dollar-yen exchange rate has again risen to near ¥160, erasing nearly half of the yen’s gains from the coordinated intervention by Japan and the United States at the end of July. Rieder also referred to the limits of intervention, saying that large-scale intervention would be necessary to enhance its long-term effectiveness.
People familiar with the matter said the Japanese administration supports an early rate hike, and that the Bank of Japan may be considering raising interest rates at its September or October Monetary Policy Meeting.