Japan, US and South Korea met to discuss the super strong USD, the super weak JPY and KRW

Greg had the headlines on this:

• Japan finance Minister Suzuki held bilateral meetings with Yellen

Reuters have a recap piece published with a little more, its well worth reading for a view of where we are at re intervention to support the JPY (and KRW perhaps).

• The United States, Japan and South Korea agreed to “consult closely” on foreign exchange markets in their first trilateral finance dialogue on Wednesday, nodding to concerns from Tokyo and Seoul over their currencies’ recent sharp declines.
  The rare warning from the three countries’ finance chiefs came as receding expectations of a near-term U.S. interest rate cut pushed the yen to 34-year lows, keeping markets on alert on the chance of an intervention by Japan to prop up the currency.
• “We will continue to cooperate to promote sustainable economic growth, financial stability, as well as orderly and well-functioning financial markets,” according to a joint statement released after the trilateral meeting.
• “We will also continue to consult closely on foreign exchange market developments in line with our existing G20 commitments, while acknowledging serious concerns of Japan and the Republic of Korea about the recent sharp depreciation of the Japanese yen and the Korean won,” it said.

Check out the piece, it got more info. This meeting and statement have raised the risk of intervention. Of course, it’s the yawning gap in yields between the US and others that’s fundamentally driving these, and other, currency pairs. They can talk and then, perhaps, intervene all they like, but until this dissipates pressure will remain.

If we do see intervention BTD is not just for stocks, K?

This article was written by Eamonn Sheridan at www.forexlive.com.