Using again the G7 to help stem the FX volatility but verbal threats only go so far

The Japanese, and other countries, are now relying on the G7 to help stem the weakness in their currencies. After verbal threats of intervention from Japan haven't worked, South Korea threatened the same as did Malaysia after the ringgit fell to a 26 year low vs the dollar and the Bank of Indonesia actually intervened, these countries convinced the G7 to add wording in yesterday's G7 Finance Ministers and Central Bank Governors' Statement to address. In headline #2 of 31 bullet points, the last sentence said "We also reaffirm our May 2017 exchange rate commitments." At that 2017 meeting they reaffirmed their "commitments to market determined exchange rates" and said they would "consult closely in regard to actions in foreign exchange markets." And also said, "excess volatility and disorderly movements in exchange rates can have adverse implications for economic and financial stability." 

https://www.mof.go.jp/english/policy/international_policy/convention/g7/20240417.pdf

Well, this commentary hasn't really helped the yen which is still down on the week. The rupiah today is giving back yesterdays rise, though still holding the Tuesday jump when intervention took place. Something to watch.

With respect to the fresh TIC data for February (thus still somewhat dated), foreigners bought a net $88.8b of US Treasuries, a needed bid even as they sold off. Notwithstanding the weak yen and $2 rise in oil prices in February, Japan added $16.4b to their holdings and remains the largest foreign holder at $1.17 trillion, though off about $150b from its late 2021 peak. With JGB yields much higher since February, the yen weaker, and oil prices higher we'll see if buying shifted back home. China shed $22.7b and their holdings have shrunk to $755b, just off the smallest amount since 2009. Any wonder that their holdings of gold are up sharply? No, especially as the EU freeze of Russian central bank assets was a jarring event for foreigner holding US assets.