On November 19th, Citigroup predicts that if the USD/JPY exchange rate reaches the range of 160.00-165.00, the Japanese government may intervene to support the yen. The institution stated that unless the USD/JPY exceeds 160.00, it is unlikely that the authorities will intervene. However, if the USD/JPY breaks through this threshold, the possibility of the Central Bank of Japan raising the interest rate to 0.5% at the December meeting will increase. In this case, senior officials of the Central Bank of Japan may begin to send stronger signals to prepare the market for this move.
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On November 19th, Citigroup predicts that if the USD/JPY exchange rate reaches the range of 160.00-165.00, the Japanese government may intervene to support the yen. The institution stated that unless the USD/JPY exceeds 160.00, it is unlikely that the authorities will intervene. However, if the USD/JPY breaks through this threshold, the possibility of the Central Bank of Japan raising the interest rate to 0.5% at the December meeting will increase. In this case, senior officials of the Central Bank of Japan may begin to send stronger signals to prepare the market for this move.