Institution: Japanese yen intervention may not be effective against the backdrop of ongoing fiscal concerns.

Portfolio manager at First Eagle Investments, Idanna Appio, stated that intervening in the Japanese forex market is unlikely to be effective unless concerns about financial conditions and the risks of the Bank of Japan's policy lag are alleviated. In an interview with the media, Appio said that intervention can only provide temporary relief and is unlikely to address concerns in the market regarding fiscal plans and the Bank of Japan's interest rate hikes. Appio believes that the Bank of Japan will raise interest rates no later than December or January, as the weakening yen provides a "political cover" for hiking rates. If the Federal Reserve maintains interest rates in December, it will indicate that the performance of the U.S. economy seems to be exceeding expectations, boosting the Bank of Japan's confidence in Japan's economic prospects. Appio manages $4 billion in funds for First Eagle, which has assets under management of $176 billion.