Yen Rhetoric: The Charade Continues by Ashraf Laidi Forexnews

the article

"I don't have any specific, professional experience in the area" . That's what Mr. Masajuro Shiokawa said in April 26, 2001, on the day of his appointment as Finance Minister and upon his departure to the G7 meeting of finance ministers.



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Interestingly, Shiokawa's first pronouncement on foreign exchange rates was made on that same day of his appointment in late April, sending the Japanese currency to 1-week and 2-week lows against the dollar and the euro after he expressed his disapproval for market interventions, indicating that currency rates should be left totally to the markets. The statement did not help the already battered yen, which was barely recovering from a tumble to 1 year lows against the greenback earlier that month.



But that was then. This weekend, Mr. Shiokawa rocked the yen--this time the opposite way--by asserting that he, along with 25 other finance ministers from Europe and Asia expected the yen to push further against the dollar towards the 115-yen level. Not only did the Finance Minister violate the unwritten rule of uttering specific currency levels, but also included 25 other policy makers in voicing his expectations for a continued decline in the already disturbingly falling dollar.