00:00Let's get more of the Japanese currency and the intervention there ahead of the rate decision coming through.
00:06It could come, in fact, any time this hour.
00:08Now, earlier on, we heard from the U.S. Secretary, Treasury Secretary, Scott Besson,
00:12speaking with Fox Business on the Japanese currency.
00:16Japanese yen seems very undervalued to me.
00:19The currency is very cheap. The economy is doing well.
00:22The prime minister is very popular and enacting very strong policies.
00:26And I think we're going to see the fundamentals come through at a point that the market will realize
00:33the yen is undervalued and should strengthen.
00:38Yep. Someone perhaps who is slightly happier now that the currency is slightly stronger
00:43is someone who earns her keep in the Japanese currency.
00:46Sherry Ahn is in Tokyo for us, our good friend, of course.
00:48Sherry, no change expected from the BOJ today.
00:52First of all, you read my mind because I did exchange some yen last night.
00:56And I was just looking to see if it would break 160. It did.
00:59We saw the spike in the yen of 3.3 percent, which is the most in over two years, right?
01:06And that happened around last night, 11 p.m. or so.
01:10And then we heard from sources that, yes, officially Japan intervened,
01:14but also the U.S. carried out rate checks at around 2.30 in the morning hours.
01:21But you said it, David. I mean, we're not expecting any change.
01:24So I wasn't that excited about this meeting.
01:2752 economists surveyed by Bloomberg all expect a hold.
01:30But the fact that you had this move by Japanese authorities, is this signaling something?
01:36TS Lombard also saying that, you know, every intervention that we've seen a lot of the times
01:41have been followed by BOJ rate hikes, especially what happened during mid-2024.
01:46So things are getting exciting now.
01:49And the fact that you have Secretary Besant, as you played out right there,
01:52just signaling this coordination with Japan,
01:55perhaps trying to deter those speculators from coming in and shorting the yen, is key here.
02:00But we'll be watching what happens, even if they hike rates.
02:04That would be a big surprise. I mean, nobody expected it.
02:07It was more exciting because of the intervention and the activities by the government,
02:10but not necessarily meaning that they will act.
02:13Half of the economists, as surveyed by Bloomberg, still expect a hike in December.
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