* Declines to endorse view that Japan was targeted
* Says G7 tried to calm rhetoric; doesn't want more noise
* Sees outright FX intervention mostly counter to G7
* Hopes Moscow G20 talks will not be distracted by FX
OTTAWA, Feb 12 Canada declined on Tuesday to say
whether the Group of Seven (G7) leading industrialized nations
had targeted Japan in the group's statement on foreign exchange
A senior Canadian finance official was asked on a call with
reporters whether he endorsed the view that the G7 communique
did not aim at any country, or the view it was aimed at Japan.
He would only say the communique was meant to strike a balance.
The G7 statement on Tuesday morning, seeking to calm fears
of a currency war, committed members to using fiscal and
monetary policies for domestic objectives and not to target
The Canadian official said the G7 had decided the statement
was necessary to calm the rhetoric about currencies over the
past few weeks, which he added had not been helpful, and Canada
did not want to add to that noise.
The official was speaking at the end of a day of turmoil on
foreign exchange markets, in which Japan interpreted the G7
statement as giving it a green light to pursue reflation,
prompting an official from another G7 nation to say that the
group was in fact concerned about excess moves in the yen and
about unilateral guidance on the yen.
The Canadian official, who declined to be identified or be
quoted directly, pointedly refused to say whether Ottawa or the
G7 was concerned about excess yen movements.
Outright forex intervention would clearly run counter to the
G7 statement, he said, unless there was market disruption or
Ottawa hopes that the currency discussions will not distract
the Group of 20 major economies at the Feb. 15-16 Moscow meeting
from other important issues, including the need to strengthen
medium-term fiscal commitments, he said.
Canada co-chairs a G20 working group that is looking at
moving beyond a commitment made in 2010 to halve fiscal deficits
by 2013 -- a pledge that have seen big misses, such as in the