Yen versus Dollar

The yen is at around 107 versus the dollar today; about 4% up month to date. There has been little sign of intervention by the BoJ. I think one factor that is pretty clear is that quite a few traders who had borrowed yen to sell it have reversed that trade in the course of closing out other market positions due to the credit crisis in the US.

The BoJ may not feel a need to intervene since Japanese automakers are rapidly gaining ground against the Detroit automakers and US auto sales are going to continue to decline across the board without regard to brand due to the credit crunch and overextended US consumer.