US Treasury Secretary Yellen spoke over the weekend
- He added: “I will not comment on whether they intervened or not. I think this is just a rumour.”
- He said that the yen “moved slightly over a relatively short period of time.”
- “We expect that these interventions will be rare and that consultations will take place.”
Why is the US Securities and Exchange Commission commenting on the yen? The G7 (of which the United States and Japan are part) has a long-standing agreement that the market sets exchange rates, with authorities intervening only when it is to mitigate volatility, not influence prices. Yellen emphasized these points in her statements.
You said on Friday that US support for Japan on intervention at the moment is lukewarm. Yellen's statements confirm this.
Yellen's information comes via a Bloomberg report (closed).