Japan’s Suzuki: G20 summary likely to reaffirm FX commitment

“The Group of 20 key nations (G20) is likely to say many currencies have moved significantly this year with increased volatility, reaffirm fx commitment in Chair Summary,” said Japanese Finance Minister Shunichi Suzuki on Friday.

While speaking from the Washington DC, Japan’s Suzuki also mentioned that G20 chair Indonesia likely to issue summary of this meeting's discussion at a later date.

It should be noted that a Ministry of Finance (MOF) official also spoke during the stated event in the Washington DC and mentioned that there will be cases where we will disclose, or won't disclose, whether we intervened, when asked whether yen's jump vs dollar rise today was due to intervention.

Additional comments

There was no discussion at G7 on what coordinated steps should be taken to address market volatility.

Want to take appropriate action vs excess fx volatility, when asked whether Japan could intervene to prop up yen.

Did not hold bilateral meeting with US Treasury Secretary Yellen this time.

US has shown clear understanding toward Japan's fx intervention last month.

Market implications

The otherwise unimportant news gained attention of the USD/JPY traders as the yen pair jumped to the fresh high since 1998 the previous day, raising expectations of Japan’s intervention. That said, the quote traders firmer around 147.25 by the press time.

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