Institution: Japan may have to continue with foreign exchange interventions

The global economic and market research team of the Commonwealth Bank of Australia stated that if Japan wishes to support the yen, they may have to engage in continuous foreign exchange intervention, which could lead to greater two-way fluctuations between the US dollar and the yen. The team pointed out that after it was widely believed that Japan's relevant departments intervened last week, they may have conducted another intervention to buy the yen in the Asian session on Wednesday. However, the team also mentioned that the long-term high energy prices combined with the US-Japan interest rate differential may continue to exert upward pressure on the US dollar against the yen. Data from the London Stock Exchange Group showed that the US dollar fell 1.0% to 156.34 yen, after hitting 155.02 yen earlier, the lowest level in intraday trading since February 24th.