The government was closely monitoring the developments in view of some rapid, one-sided moves and would act accordingly in case of excessive moves, Suzuki said yesterday. The government clearly dislikes the Yen’s rapid depreciation. The market was unimpressed by the comments though. Rightly so in my view.

Any subliminal threats of possible FX interventions, additionally supported by Vice Minister of Finance for International Affairs, Masato Kanda’s (‘Mr. Yen’) confirmation in office for a further year at the beginning of the week, were not really able to impress the market either.

Suzuki might shout as loudly as he likes, but he and the BoJ are likely to be seen as toothless tigers by the market until monetary policy changes fundamentally. And that means that the Yen is likely to ease further short-term.