- Raising rates by a little bit will not stop yen weakness
- Some countries that have raised rates have even seen their currencies weaken
- A large rate hike would bring substantial damage to the Japanese economy
That pretty much reaffirms that they are not really in the mood to shift their policy thinking one bit for the time being. It’s the finger-pointing way of justifying it but hey, whatever it takes. USD/JPY now trading up by 0.3% to the highs for the day at 138.65.