Japan finance minister Suzuki with light intervention comments, really light on stuff. This isn't going to scare anyone:
- BOJ’s decision to change policy could squeeze policy expenditures
- Won't comment on forex levels
- Important foe forex rates to move stable reflecting fundamentals
- Watching forex moves with high sense of urgency
- Fx rates are set by market
- Will take appropriate steps in fiscal management
- The possibility of FX intervention is the most difficult to comment
As a guide to more serious verbal intervention, I posted this a while back:
What you want to be listening out for is more specific, and it'll go very much like this, key phrases to be aware of:
- we do not want to see one-sided moves in FX
- we do not want to see excessive moves in FX
- FX movement is not reflecting fundamentals
- we will not tolerate speculative movement
- The Ministry of Finance will combat excessive moves
And followed up with:
there are four stages of language before an actual intervention occurs.
- Stage 1: Excessive and disorderly movement in exchange rates is undesirable.
- Stage 2: We will closely monitor movements in exchange rates.
- Stage 3: We will take determined actions if necessary.
- Stage 4. We have just carried out an intervention (on the implementation)
Add in a little more now, this summary via HSBC:
“We will look out for words like
- ‘sense of urgency’,
- ‘excessive’,
- ‘one-sided’,
- ‘ready to act’,
coming from more speakers including Kanda or even Prime Minister [Fumio] Kishida.”
