Strategist: Intervention may be the key method for Japan to curb currency depreciation

Golden Ten Data reported on March 19 that Makoto Noji, a strategist at SMBC Nikko Securities, stated that the only viable tool for Japan to curb inflationary pressure and yen weakness is direct currency intervention. As Japan relies on imports to meet its energy needs, it is facing a vicious cycle of rising crude oil prices and yen depreciation. Increased fiscal spending to offset fuel costs may also lead to further depreciation of the yen. Although intervention is often seen as a temporary measure, amid high global oil prices, it serves as a strategic defense to buy time.