Intervention to streWide-ranging comments from Yellen. On potential intervention in the yen FX market:
-
Treasury generally understands need to smooth out volatility in
exchange rates but not to influence forex levels - View on any Japanese
yen intervention would depend on circumstances
Japan is part of a G7 agreement not to take actions to manipulate its currency rate to gain a benefit. That’s why officials there insist their super-easy monetary policy (which is a factor weakening the yen against higher rate countries like the US right now) is for domestic purposes, not to influence the yen FX rate. Japanese intervention to strengthen the yen could be viewed as contravening G7 agreements. Given the extent of the yen weakness that’s not a strong argument right now though. Yellen just being a bit a stickler here.
And, on other matters
- Demand-supply
imbalances in US labor market have abated - There may be
spillovers from China’s economic difficulties to US - Morocco strongly
wanted IMF, World Bank meetings to proceed, we want to be helpful for
people of Morocco - US growth needs to
slow in line with potential due to full employment - Expects China to use
its policy space to avoid a slowdown with ‘major proportions’
This article was written by Eamonn Sheridan at www.forexlive.com. Source