First, the Swiss government, now the Japanese. ..
http://www.bloomberg.com/news/2011-0...reciation.htmlJapan followed Switzerland in intervening in the foreign-exchange market in an effort to stem an appreciating exchange rate that threatened to damage export competitiveness.
Japan acted alone in the market, while officials were in contact with other nations, Finance Minister Yoshihiko Noda told reporters in Tokyo today. He also suggested that the central bank may follow with monetary stimulus, saying that he hoped the Bank of Japan would take appropriate action. The BOJ separately brought forward by a day the end of its scheduled policy meeting.
Switzerland is also contending with a surge in its foreign- exchange rate, unexpectedly cutting interest rates and pledging to boost the supply of the franc yesterday. Both currencies, of nations with current-account surpluses, have advanced as investors sought a haven from the euro-region debt crisis and a deteriorating U.S. economy.
Brazil next on the warpath??http://www.turkishweekly.net/news/12...rency-war.htmlBrazilian Finance Minister Guido Mantega warned Sunday that Brazil could not afford to be left behind in a global game of currency manipulation for competitive advantage.
“The whole world is fighting for markets out there, and one way to do that is with currency manipulation, by depreciating currency. We cannot be left behind in this game,” he said in an interview with O Estado de Sao Paulo.
There have been currency skirmishes since GFC I, but could these "unexpected" moves by sovereign states without international consultation (and surely a whole lot more of "revenge" devaluations yet to come by those countries already at breaking point) be the tipping point for GFC MkII proper????
What hope for the Lil' Ozzie Bleeder, eh? How will a much lower Yen (and presumably a much lower Brazilian Real in the near future) affect our terms of trade etc?