JPY: US Treasury Secretary Lew’s message was clear - MUFG

Derek Halpenny, European Head of GMR at MUFG, notes that the message from the US yesterday was clear with Treasury Secretary Lew stating that markets were “orderly” and that essentially he did not see reason for unilateral intervention in the foreign exchange markets.

Key Quotes

“No doubt that is perhaps the view of the Japanese administration as well. Yes, there was a sharp move lower in USD/JPY but yesterday and today, market conditions have been much more orderly. A renewed sharp move below the 100.00 level would no doubt be required for the Japanese to consider intervening but certainly the passing of the initial market reaction without intervention raises the prospect that the Japanese authorities will be able to refrain from any market intervention.”