Looks like the G7 has no major reservations with Japan intervening on its own with USD/JPY near record lows but the group showed no willingness to pitch in to help.
Interventions to date have slowed the yen’s advance but not reversed it. So long as Europe remains a sovereign debt cauldron, JPY strength will remain.
USD/JPY is slightly above record lows and EUR/JPY closed at 10 year lows on Friday. Don’t expect a reversal until the odds of Greek default fall from the 90% area…
Here are the relevant portions of the communique:
We reaffirmed our shared interest in a strong and stable international financial system, and our support for market-determined exchange rates. Excess volatility and disorderly movements in exchange rates have adverse implications for economic and financial stability.
We will consult closely in regard to actions in exchange markets and will cooperate as appropriate. We look forward to working with our colleagues in the G20 and the IMF in the coming weeks to rebalance demand and strengthen global growth. As previously agreed, structural reforms will make an important contribution in this regard.”
