Japan’s new top financial diplomat Rintaro Tamaki says the USD will remain the world’s key currency and a core asset in Japan’s $1 trillion of foreign currency reserves.
Mr Tamaki, who this week took over as vice finance minister for international affairs, also said he wouldn’t completely rule out intervention in the markets, trotting out the usual rhetoric.
And here it is; “Of course, currency levels should be determined by the markets. That’s the base line in Group of Seven statements. But if there are excessive moves, we will act with consideration for the impact on the economy.”
All very interesting. Yawn.
USD/JPY sits at 93.65, pretty much where it started out in Europe. At the end of the day there is no way, and I mean NO WAY, Japanese authorities are going to intervene around current levels, or probably even at levels close by.
The general feeling seems to be that they might be tempted to intervene if USD/JPY made it down to the 80.00/85.00 area, which sounds about right.
