The U.S. Treasury Department maintained a cautious stance on foreign exchange intervention to stop the yen from plummeting. The yen continues to hit its lowest level since 1998 against the dollar.
U.S. Treasury Department spokeswoman Gwynne was asked on Thursday whether the Treasury Department’s stance had changed since Yellen’s July visit to Japan to discuss the yen’s exchange rate and currency intervention. ‘ he replied.
After a meeting with Finance Minister Shunichi Suzuki in Tokyo in July, Secretary Yellen told reporters, “In general, the market should decide the exchange rate of the currencies of Japan, the United States, and the Group of Seven (G7). is our view,” he said. “Intervention is justified only in rare and exceptional circumstances. We did not discuss intervention.”
As of 10:35 a.m. New York time on the 7th, the yen was about 1% weaker against the US dollar than the previous day, at 144.34 yen. At one point, the price approached 145 yen. It has fallen more than 20% since the beginning of the year.
Original title:Yen Plunge Fails to Shift US Treasury Stance on FX Intervention(excerpt)