Forex Flash: Rogue G7 source says nothing new – BBH

Brown Brothers Harriman analysts feel that there was nothing in the rogue G7 sourced comment yesterday that Japanese Finance Minister Aso did not say prior to the G7 statement and before the weekend.

The pace of the yen's depreciation was too fast and the market reacted to it at the time. They feel that it is interesting to speculate who is the G7 source. They write, “It may have come from a country that feared the loss of competitiveness from a depreciating yen the most. Within the G7, this seems an awful lot like France. Another possible suspect is a country that wanted to make sure Japanese officials understood its displeasure with citing specific bilateral exchange rate targets, which violates the general G7 agreement (and contrary to talk of official manipulation, this Rubicon is rarely crossed these days). The possible candidate there is the US; perhaps as a corrective to Treasury's Brainard's comments which appeared to have helped push dollar to new highs against the yen. “