Yen Rises On Revaluation, Japan Post Saga Continues

Also, as we talked about in our dollar section, any basket float used by China would have to include the Japanese yen, which will also be very bullish for the currency.  We had promised to update our SSI numbers.  The USDJPY was at -2.45 before China’s announcement and is now at still net short at -1.42.  Separately, central figures continued to place pressure publically on the upper house to pass through the bill, that would ultimately privatize Japan Post, by the end of the current parliament session on August 13th.  Contributing to the push, Bank of Japan Governor Fukui today commented that the sale would “ensure equal footing in the private sector” adding to previous comments by the Prime Minister that the sale would be the nation’s biggest reform in a century.  A sign of good times, an approved sale may spark additional transactions as Fukui added that currently Japanese companies have “high levels” of cash and as a result, are ready and willing to expand investment opportunities.