Currency Jawboning Back in Vogue as Investors Flee to Havens
- Speculation builds that Japan will follow words with action
- Verbal intervention won't have a sustained effect: BofA
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From Stockholm and Zurich to Tokyo and Bangkok, central bankers are turning up the volume to leave traders in no doubt that they’re unhappy about the extent to which their currencies are gaining.
It’s known as verbal intervention and carries the implicit threat of action -- either currency sales, interest-rate cuts or more monetary stimulus.