US Treasury Secretary Yellen warns over potential yen intervention

<p>Wide-ranging comments from Yellen. On potential intervention in the yen FX market:</p><ul><li>
Treasury generally understands need to smooth out volatility in
exchange rates but not to influence forex levels</li><li>View on any Japanese
yen intervention would depend on circumstances</li></ul><p>Japan is part of a G7 agreement not to take actions to manipulate its currency rate to gain a benefit. That's why officials there insist their super-easy monetary policy (which is a factor weakening the yen against higher rate countries like the US right now) is for domestic purposes, not to influence the yen FX rate. </p><p>And, on other matters</p><ul><li>Demand-supply
imbalances in US labor market have abated</li><li>There may be
spillovers from China's economic difficulties to US</li><li>Morocco strongly
wanted IMF, World Bank meetings to proceed, we want to be helpful for
people of Morocco</li><li>US growth needs to
slow in line with potential due to full employment</li><li>Expects China to use
its policy space to avoid a slowdown with 'major proportions'</li></ul>

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