Rabobank analyst Jane Foley says market speculation is growing that Japanese
authorities may use thin US-holiday liquidity on Friday to intervene in the yen;
no action could be the more surprising outcome. She judges further intervention
likely, but warns a single round of intervention is unlikely to alter entrenched
negative market sentiment toward the yen. Yen weakness is partly dollar-driven,
and gains in Japanese equities may prompt foreign investors to increase hedging
against yen depreciation.
