Exchange rate rebounds after foreign exchange market interventions

- There are the rebounds in the exchange rate after foreign exchange intervention.
- When intervention is strongly effective, the exchange rate rebounds at next day.
- The effect of intervention is reduced slightly by the rebounds.

This study examined the rebounds in the exchange rate after foreign exchange intervention. When intervention is strongly effective, the exchange rate rebounds at next day. The effect of intervention is reduced slightly by the rebound after the intervention. The exchange rate might have been 67.12-77.47 yen to a US dollar without yen-selling/dollar-purchasing intervention of 74,691,100 million yen implemented by the Japanese government since 1991, in comparison to the actual exchange rate was 103.19 yen to the US dollar at the end of March 2014.