Goldman Sachs and Bank of America see little immediate risk of currency intervention in Japan, saying the usual triggers “have not yet been met” even as the yen approaches 155 per dollar.
The yen “does not appear to be at particularly weak levels,” strategist Karen Reichgott Fishman wrote in a note dated Monday. Recent underperformance has been driven largely by a repricing of Japan’s fiscal risk premium and near-term Bank of Japan rate expectations, she said.
That view is echoed by BofA’s Shusuke Yamada, who said dollar-yen above 155 is "unlikely to trigger imminent intervention in absence of excessive volatility or a build-up in speculative positioning.”
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