Japan's chief government Yoshihide Suga spokesman speaking to Reuters yesterday
In the interview, published earlier today, Suga said the G20's agreement to avoid competitive currency devaluation does not mean Japan cannot intervene in response to one-sided currency moves. Plenty of hot air coming out of Japan right now and these latest comments offer little of note.
He added though that PM Shinzo Abe's comment to the WSJ last week that countries should avoid "arbitrary intervention," was misunderstood and does not rule out intervention for Japan.
"What the G20 is talking about is arbitrary intervention, which is different from responding to a one-sided move."The prime minister's comments were based on the G20 understanding that long-term manipulation of currencies is undesirable."
Suga also rejected the argument that the adoption of negative rates was a sign the BOJ's attempts to meet its 2% price target had reached a limit. Raising the sales tax will go ahead as planned next year he also added.
Abe is meeting foreign economists to prepare to host a summit of G7 finance ministers and central bank governors in May, where he will urge other countries to coordinate policies to accelerate global growth.
Reuters has the full article here
The will they/won't they intervention debate continues but whilst we can't rule it out I still regard it as unlikely at the current time even if we see further falls this week, which I also expect. A view I have frequently expressed on these pages. Markets have a thirst for more and they'll look to test the MOF/BOJ's resolve.
USDJPY is delicately poised closing in NY right on the 108.00 line in the sand which has so far stopped the decline.
Japan's Suga says don't rule out yen intervention, but will they step in?
