© Stocksak. Yellen Denies That Japan Should Intervene on the Yen Again
(Bloomberg) — Treasury Secretary Janet Yellen declined to comment on reports that the Japanese government is again intervening in currency markets, saying the US government hadn’t received any notice from Tokyo about such a move.
“I’m not aware of any intervention that the Japanese have done,” Yellen told reporters following a speech in New York.
Japan may have carried out its largest currency intervention to prop up yen late on Friday. Based on Bank of Japan balance of Payment figures and an estimate of flows made by Central Tanshi Co, that followed a Japan announced move to intervene in September to purchase the yen. Market participants also pointed to possible action from Japan on Monday.
“They did inform us previously of an intervention, which we understood was a concern over volatility,” she said before adding that the Treasury hadn’t received any new communication about another intervention.
Yellen has been averse to currency interventions. She believes that the market should determine exchange rates. After the September intervention, the Treasury issued a statement that fell short of endorsing the move, but saying “we understand Japan’s action.”
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