Japan May Intervene in Yen Market Again, BOJ Rate Hikes Expected

Japan may intervene in the yen market at any time to stem its weakness, according to former top currency diplomat Mitsuhiro Furusawa. The yen is 'clearly too weak' and hurting the economy by boosting import costs, Furusawa said.

Furusawa believes that a joint intervention with the US could take place if the yen returns to levels hit before their last joint intervention in August, which drove up the yen to around 155.20 per dollar from a 40-year low of 163.99. However, the yen has since slid back to around 159.50.

Furusawa thinks that the Bank of Japan (BOJ) should raise interest rates faster than expected and communicate its intentions more clearly. He believes that the BOJ's next move would likely come in December or January, followed by another hike sometime in the next fiscal year beginning in April 2027.