Tetsushi Kajimoto and Leika Kihara
TOKYO (Reuters) – Japanese Finance Minister Shunichi Suzuki said authorities were ready to deal with speculative currency movements, a Tokyo intervention New warnings issued in the next few days for the foreign exchange market prevented the yen from falling for the first time in more than two decades.
Suzuki also said at a news conference on Monday that the government and the Bank of Japan (BOJ) were sharing concerns about a sharp drop in the currency.
“We are deeply concerned about the recent rapid and one-sided market movement driven in part by speculative trading,” Suzuki said in a news release. “No change, we are ready to react as needed,” he added. First time buying yen since 1998.
The yen has fallen sharply recently, Favorable to lower household living costs by raising the price of imported fuel and food, in part due to the widening divergence between the Federal Reserve’s aggressive monetary tightening policy and the Bank of Japan’s ultra-easy monetary policy.
BOJ Haruhiko Naguroda, who is due to address business leaders in Osaka, western Japan later on Monday, is likely to comment on the yen and government intervention.
The dollar gained 0. 78% to 143.90 The yen continued to climb on Monday to Thursday’s Annual peak 90.90. At Japanese authorities The same day after entering the market, it plummeted to 24.31.
While the ravings of government officials may make markets nervous about the prospect of further intervention, it may be difficult to repeatedly intervene in currency markets and sell huge dollars as Japan may face criticism from its G7 peers.
“Japan is unlikely to continue to intervene to defend a line, such as 145 yen/dollar,” former top Japanese leader Currency diplomat Naoyuki Shinohara told Reuters.
The yen is not the only one in a downward spiral. Several other currencies were hit hard, in part by the Federal Reserve’s aggressive rate hikes in recent months.
