We've been hearing similar from Japan's Ministry of Finance (it's the MOF that will direct the Bank of Japan to intervene, should it come to that) ... more now over the weekend ...

Japan MOF official:

  • Japan strongly lobbied for G20 communique to retain language that excess volatility, disorderly FX moves have adverse effect on economy
  • Warnings on excess, disorderly FX moves usually taken out of communiques when market volatility falls but Japan argued current conditions still warrant leaving it in
  • Japan, as with any other country, won't intervene in currency market for competitive devaluation
  • US agrees that excess volatility, disorderly FX moves are undesirable
  • Competitive devaluation refers to attempts to keep FX levels artificially low for very long time to gain export competitiveness
  • Japan ready to take needed steps if day-to-day FX swings are excessive, like sharp yen rises seen in 1st and 2nd weeks of February
  • Japan believes recent FX moves are one-sided and conveyed this view to US but can't comment on US response

Headlines via Reuters

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The jawboning continues but so far no actual cash has been spent on intervention in the spot forex market.

There are plenty of opinions about on at what price we might see intervention (for example).