Yen buying intervention that drew U.S. ire

5/2In the Wellington market, there were moves that appeared to be yen-buying intervention by the Ministry of Finance and the Bank of Japan(hereinafter BOJ), and in connection with the sharp drop in the USD/JPY exchange rate, comments from U.S. Treasury Secretary Janet Yellen saying that “intervention should be rare” and “should be discussed beforehand” were issued, indirectly criticizing Japan’s intervention; this conveyed to market participants the impression that the United States does not approve of Japan’s intervention. This article explains the background and the appropriate policy conduct going forward.