Japan will react properly to extreme FX relocations, financing minister states

Japanese Finance Minister Shunichi Suzuki stated on Tuesday authorities would react properly to extreme currency relocations driven by speculators, as the yen was up to a fresh 32- year low to the dollar.

Suzuki, speaking with press reporters, decreased to comment when asked whether authorities are carrying out stealth intervention to support the weakening currency.

“We cannot tolerate excessive currency moves driven by speculators,” Suzuki stated. “We are closely watching currency moves with a sense of urgency.”

Suzuki later on informed parliament the federal government is all set to take proper action “decisively” versus speculative-driven, extreme relocations in the yen. When asked by an opposition legislator what he implied by definitive action, Suzuki stated: “We intervened in the currency market (last month).”

At the exact same parliament session, Prime Minister Fumio Kishida likewise stated speculative-driven fast currency relocations were troublesome.

Kishida dismissed the dominant market see the Bank of Japan’s ultra-easy financial policy was mainly behind the yen’s sharp decreases, stating that currency rates carry on different aspects, not simply U.S.-Japan rates of interest differentials.

“The Bank of Japan decides monetary policy based not just on currency moves but comprehensive factors, such as economic and price developments as well as the impact on small and midsize firms,” Kishida stated.

Japan invested 2.8 trillion yen ($1881 billion) in dollar-selling, yen-buying last month when authorities stepped in to prop up the yen for the very first time given that 1998.

Speculation stays that authorities might have intervened in the market ever since without revealing, although Suzuki decreased to discuss that.

“Generally speaking, there are times when we intervene by making announcements and some other times when we do without it,” Suzuki stated, decreasing to comment even more.