G7 Finance Minister's strong dollar '150 yen' to Chinese 'dollar exchange'

Reuters reported an estimate of '150 yen' while maintaining a strong dollar system at the G7 finance ministers meeting.
China's state-owned banks stepped up their intervention to defend against the yuan's weakness, and banking sources told Reuters that the banks were selling large amounts of US dollars and using a combination of swaps and spot trading, Reuters reported.
Reuters, citing six banking sources, said: “We have witnessed major state-owned banks in China exchanging yuan for US dollars in the forward market and selling those dollars in the spot market. It seems to be the goal of stabilizing the yuan in the future,” he said on the 17th.
The yuan was down 11.6% against the dollar this year, and was trading at around 7.1980 to the dollar on the 17th.
The one-year dollar/renminbi forward fell sharply following action by the state-owned bank, pushing the yuan to 6.95 per dollar, market officials told Reuters the scale of the dollar-selling operation was "somewhat huge".
Reuters reported on the 16th that "in the currency market, the dollar remains king, with investor prices peaking at about 5% in the US interest rate." Despite the high maturity level, he refrained from intervening and rose to 148.73 yen on the 17th and headed for the next target of 150.00.”
Japan's finance minister Shunichi Suzuki admitted at the G7 meeting that his allies had no plans for a coordinated intervention while complaining about the fallout from the US central bank's aggressive rate hike path, Reuters said.
Minister of Strategy and Finance (Deputy Prime Minister) Choo Kyung-ho said in the United States on the 15th, “The government will abolish taxes on foreign income from investments in government bonds and monetary stabilization bonds from the 17th. It was included on the watch list, but I thought we needed a quick move to attract more foreign investment to the government bond market," he said.
Global index provider FTSE Russell announced on September 30 that it had added South Korea to its watch list for inclusion in the World Government Bond Index (WGBI).
U.S. Treasury Secretary Janet Yellen, after the G7 meeting, made it clear that the U.S. has no desire to act collectively, saying the overall strength of the dollar was "a natural consequence of the different pace of monetary tightening in the U.S. and other countries." said
Sanjaya Panth, deputy director of the International Monetary Fund for Asia Pacific, told Reuters: "Emerging Asian countries have witnessed unprecedented and significant capital outflows this year, increasing the need for policy makers to build liquidity buffers and take other measures to prepare for turbulence."
Daisaku Ueno, chief foreign exchange strategist at Mitsubishi UFJ Morgan Stanley, said, “It is impossible to reverse the downward trend of the yen with a solo intervention. ' he told Reuters.
The dollar jumped about 1% on the 14th to a 32-year high of 148.86 yen, testing the will of government authorities to counter the continued decline in the Japanese currency.
The dollar/yen is now up about 2% from the level that Japan intervened with its purchase of the yen on September 22nd.
Japanese policymakers have said they will not defend a specific yen level and will instead focus on easing volatility, Reuters reported.
Japanese Finance Minister Suzuki Suzuki said in Washington after the G7 and G20 ended in Washington, "Many countries saw the need to be vigilant about the outflow effects of global monetary tightening and referred to currency movements in that context. However, discussions about what coordinated actions could be taken There was no," he said at a press conference on the 13th.
During the 2015 economic downturn, China spent $1 trillion in yuan aid in reserves, which drew much criticism for its sharp decline in official reserves.
The move by China's state-owned banks appears to be a way for the main banks to raise dollars when the dollar is scarce and expensive due to rising US yields, Reuters reported, citing analysts.
The G7 finance ministers' meeting in Washington last week suggested a reenactment of joint intervention in the "Plaza Agreement", a monetary value strategy in 1985, but it turned out that no attempt was made in the first place.
South Korean Minister Choo Kyung-ho attended the G20, and immediately started to catch foreign funds by announcing the implementation of tax exemption for foreign bond investment in the United States.

President Chang-yong Lee held a press conference for Korean reporters at the Peterson Institute for International Economics (PIIE) on the 15th. Fed Chairman Jerome Powell said he was watching the spillover closely."

Based on this, he said, "We will consider the spillover (affecting) overseas (the United States) and the resulting spillback (negative impact, re-entry into the United States)," he said. "I think we should act accordingly." announced financial policy.

The Wall Street Journal reported on the 16th that the results of a study by economists "are expected to plunge into a recession in the next 12 months as the Fed cuts economic contracts and cuts employers' jobs to keep inflation down."