Ruilian Bank strategist Peter Kinsella said in a report that yen weakness is
likely to persist because the Bank of Japan is unlikely to deliver major policy
changes or signal an accelerated tightening this Friday. Japan's real interest
rates (inflation-adjusted) remain negative. He said that unless the Bank of
Japan makes a credible, sizeable rate-hike commitment, yen appreciation is
unlikely even if authorities wish to see a stronger currency. Investors should
expect more threats of intervention to support the yen from Japanese
authorities, but Kinsella said such rhetoric often amounts to bluster.
