No intervention on euro/yen predicts Deutsche Bank
Japanese and European officials will not seek to bolster the yen against the euro unless it trades below 150 against the euro for a sustained period, Deutsche Bank has predicted.
Sterling fell 0.13 per cent against the dollar last night, while the euro fell 0.15 per cent against the pound.
The euro has traded 6.8 per cent up against the yen over the course of the year and the yen fell to a new record of 150.73 in August, back up to 149.77 in latest trading.
"Europe and Japan do not yet appear to have an urgent need to reverse,"
the falls however, Deutsche Bank analysts told Bloomberg.
A stronger yen could jeopardise Japan's economic resurgence and a falling euro could add to inflationary pressures, the analysts added.
"Before intervention were to become a legitimate threat to euro-yen, escalation of verbal intervention would be the next likely step," they wrote.
The European Central Bank has not intervened to rebalance the euro since 2000 and the Japanese finance ministry has not intervened since March 2004.
No move on yen/euro balance