US spars with Japan over yen at G-7; No sign of currency war

(From Bloomberg)

  • Aso: Can’t clearly say yen moves have been ‘orderly’
  • Lew: ‘It’s a pretty high bar to have disorderly conditions’

While it was off the official agenda, friction over the yen was never far away as Group of Seven finance chiefs met in Japan for two days of talks that ended Saturday.

Japanese officials repeatedly voiced their concern about disorderly trading in the currency in the days and weeks leading up to the gathering, stating that the government could intervene in the market if needed. The U.S. Treasury countered that recent moves had been orderly, giving no reason to intervene to weaken the yen.

Below is a chart of trading in the yen in recent years, followed by key comments from Japanese Finance Minister Taro Aso and U.S. Treasury Secretary Jack Lew at the G-7 event in Sendai, northern Japan. While the U.S. and Japan were not alone in commenting on currency issues, French Finance Minster Michel Sapin was clear in stating that currency war wouldn’t break out among G-7 members. Read more

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Categories: Asia Unhedged, China

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