Speculative moves are behind recent yen movementDoes not consider a 4% move in a span of 2 weeks as being a “mild” moveClosely watching FX moves with a high sense of urgencyWill not rule out any steps to respond to “disorderly” FX moves
It was evident that the barrage of verbal jawboning throughout the week wasn’t working. So, this was the next step by Japanese authorities. Kanda’s remarks are just a tad stronger compared to all the other warnings today. But that is only the case because it is reinforced by a meeting between the three parties noted above.
Otherwise, his remarks aren’t anything new in terms of what we’ve already heard. But that is what we already expected. If anything, it is just an added emphasis that they could look to intervene if things continue in the sessions ahead.
This article was written by Justin Low at www.forexlive.com.