The news article highlights a verbal intervention attempt from Suzuki that is not expected to significantly impact traders. Suzuki states that there should not be a “defence line” when dealing with foreign exchange (FX) moves and that he is not ruling out any measures to respond to disorderly FX moves. He also states that he is closely monitoring FX moves with a sense of urgency.
However, Suzuki’s mention of a “defence line” refers to a level for USD/JPY that would trigger intervention. It is difficult for him to specify a firm level because traders would quickly test his resolve by pushing the rate to that level. If Suzuki does intervene, the dip in the exchange rate would likely be bought for another attempt. On the other hand, if he does not intervene, his threats would be seen as empty.
Overall, Suzuki’s verbal intervention attempts are seen as a one-way street that may not have a significant impact on the FX market. Traders are likely to continue testing his resolve and the effectiveness of any potential interventions.