Japan will forgo intervening in the market unless the yen plunges past 150 to the dollar and becomes a huge political headache for premier Fumio Kishida, said a former central bank official who was involved in Tokyo's market foray a decade ago.
The dollar stood at 146.125 yen on Tuesday, staying near a nine-month high of 146.565 hit last Thursday.
The public's mood is key to when authorities intervene due to the strong attention Japanese firms and households place on yen moves, said Takeuchi. "When to intervene has always been an extremely political decision in Japan. Nowadays, it's the prime minister that ultimately makes the call," Takeuchi told Reuters on Tuesday.
Before stepping in, authorities will likely offer verbal warnings and conduct rate checks to buy time in hope markets will correct themselves, Takeuchi said.
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