WASHINGTON (Reuters) - A statement from the Group of Seven rich nations on Tuesday was meant to signal concern about excessive movement in the value of Japan’s currency and statements from Tokyo about yen levels, a G7 official said.
“The G7 statement was misinterpreted. The G7 statement signaled concern about excess moves in the yen,” the official said on Tuesday. “The G7 is concerned about unilateral guidance on the yen. Japan will be in the spotlight at the G20 in Moscow this weekend.”
The official was referring to a meeting of the Group of 20 finance ministers in Moscow this Friday and Saturday.
The yen surged against the U.S. dollar and the euro after the statement from the G7 official, which ran counter to the way markets had been interpreting the position of the G7 nations.
Earlier on Tuesday, the G7 said it remained committed to market-determined exchange rates and that fiscal and monetary policies must not be directed at devaluing currencies.
Japan interpreted the G7 currency statement as giving it a green light to continue efforts to reflate its economy, and the yen initially fell following the currency statement.
Reporting by Anna Yukhananov; Editing by James Dalgleish