Greg made headlines about it:
Reuters has published a summary article with a bit more, which is worth reading to get a sense of the current state of the reintervention to support the JPY (and KRW perhaps).
- The United States, Japan and South Korea agreed to “consult closely” on foreign exchange markets during their first trilateral financial dialogue on Wednesday, echoing concerns from Tokyo and Seoul over the recent sharp decline in their currencies. The rare warning from the three countries’ finance chiefs came as expectations of a cut in short-term U.S. interest rates pushed the yen to a 34-year low, keeping markets on alert over the possibility of an intervention by Japan to support the currency.
- “We will continue to cooperate to promote sustainable economic growth, financial stability and orderly and well-functioning financial markets,” according to a joint statement issued after the trilateral meeting.
- “We will also continue to consult closely on developments in the foreign exchange market, in line with our existing commitments in the G20, while recognizing the serious concerns of Japan and the Republic of Korea regarding the recent sharp depreciation of the Japanese yen and of the Korean won,” he added.
Look at the article, it has more information. This meeting and this declaration raised the risk of intervention. Of course, it is the yawning gap between the yields of the United States and other countries that fundamentally determines these and other currency pairs. They can talk and then, perhaps, intervene as much as they want, but until that dissipates, the pressure will persist.
If we see intervention, BTD is not just about stocks, K?
cnbctv18-forexlive
