Less talking would benefit economies

william pesek jr

Ultimately, fundamentals rather than words should dictate currency levels

One of globalisation's most intriguing trends is the rise of rhetorical currency policies in markets. Nowadays, where the yen, dollar, baht, won or other monetary units trade can has as much to do with spoken words as fundamentals. Nowhere is that clearer than in Tokyo. Officials, when they're not actually selling the yen, seem to spend every waking hour talking it down. When they are sleeping, policymakers may well be dreaming up new verbal intervention strategies. If Tokyo did what it preaches, and let markets decide the yen's value, its currency might strengthen towards 100 yen to the U...