The euro dropped below €1.23 as payrolls missed hard and then the yen… jerked:
And, considering Japan’s “warning” earlier, such movement means a little yen…tervention cannot be discounted.
From Reuters (with our emphasis):
Takehiko Nakao, vice finance minister for international affairs, said it was becoming more obvious that current yen rises were being driven by speculators and warned that Tokyo was ready to intervene should such moves continue.
“Although there might be differences (in views with the United States and European countries) from time to time, the Japanese government is determined to take an immediate response to volatility in the currency market,” he told a Euromoney forum.
“Monetary policy is important, but we shouldn’t exclude the possibility of taking our response in the market, which is intervention,” he said.
Nakao’s remarks were the most direct warning of intervention by Japanese policymaker since the yen began to creep up again on safe-haven demand amid worries about Europe’s deepening debt crisis, and came on the heels of similar comments by Finance Minister Jun Azumi earlier in the day.
“It is clear that the current one-sided currency moves do not reflect the economy’s fundamentals,” Azumi told a news conference after a cabinet meeting.
“We will need to take decisive action if excessive currency moves continue.”
Japan’s Ministry of Finance refused to comment on the move, according to the news agency.