Japan ex-MOF official: Japan lacks G-7 support for forex intervention
A report in the Nikkei (Japan press), citing comments from a former Japanese Finance Ministry official in charge of currency policy
Naoyuki Shinohara, former vice minister of finance for international affairs:
- Fellow Group of Seven nations would be unlikely to accept moves by Japan to stop the yen's appreciation under the current economic conditions
- "While the yen was excessively strong when it traded in the range of 70 to the dollar in the past, it was excessively weak in the 120 range"
- "Based on effective exchange rates, the yen cannot be said to be either strong or weak right now."
"While there are concerns that the global economy may be weakening, the threat is not as serious as the Lehman crisis."
USD/JPY bulls are probably muttering something along the line of "we don't need no stinkin' intervention" with USD/JPY up nearly 200 points from its overnight lows at one stage earlier today: