Japan finance minister Suzuki:
- won’t comment on forex levels
- says it’s important for currencies to move in a stable manner
- is closely watching FX moves with a high sense of urgency
- makes no comment when asked about currency intervention.
On his “No Comment on Currency Intervention”: By making no comment when asked about currency intervention, Minister Suzuki leaves open the possibility of intervening in the currency markets, without committing to any specific action. Currency intervention can be a tool for central banks and finance ministries to directly influence the value of their currency by buying or selling foreign currency reserves. This ambiguity in communication may be strategic, aiming to maintain flexibility in policy responses while deterring speculative trading that could destabilize the currency.
This article was written by Eamonn Sheridan at www.forexlive.com. Source