It's hard to know what to misinterpret anymore [Updated] First we had this rather bland statement from the G7 - "domestic objectives" etc - and now this: G7 "official," we note. At least the yen enjoyed it: Update at 1510 from the ever readable Alan Ruskin of Deutsche: It will need something like a senior (named!) US official referring to the G7 statement on excessive volatility to give a clear signal that G7 ex Japan has run out of patience on yen weakness. You would have thought that it did not need to be explicitly spelled out, that the first part of a G7 agreement would be to respect the agreement, rather than 1) infer that key elements were left out; and 2) undermine G7"s importance by referring to G20. If it comes to G20"s thoughts being important, it will be open season for FX manipulation, given the prevalence of dirty floats and pegs outside the G10 world. We don't know who the official is who spoke about the G7 statement being misinterpreted, or how senior they are, we know only one thing for sure that the unnamed official is not Japanese. Quite frankly this is a mess, but it will only restrain yen selling briefly, unless echoed by important named officials (see comments on excessive volatility below).