📝USD/JPY Intervention Would Be Counter-Productive For U.S.: CBA

Intervention to weaken the dollar against Japan’s currency would be counter-productive for the U.S. because a stronger greenback helps Fed meet its 2% inflation target by weighing on import prices. Intervention is unlikely to occur with the cooperation of U.S. Treasury or other central banks, but if there is to be intervention by Japanese authorities, it will most likely happen this month. The pace of yen weakness is more important than the spot level. - CBA