The Japanese government will work closely with the Bank of Japan (BOJ) on currency market issues to ensure policy alignment, Finance Minister Shunichi Suzuki announced on Tuesday.
“We’ll closely monitor the currency and take all possible measures,” Suzuki stated, emphasizing the importance of exchange rates moving stably in line with economic fundamentals.
Suzuki downplayed market speculation about specific exchange rate targets, offering little detail on the suspected interventions by Tokyo when the yen dropped below 160 per dollar late last month. The yen has since rebounded to around 156.40 per dollar.
During a regular post-cabinet meeting press conference, Suzuki also noted that the government is monitoring interest rate movements closely. His comments followed an inquiry about the BOJ’s unexpected reduction in Japanese government bond purchases during a regular operation on Monday.
From a broader perspective, Suzuki stressed the importance of taking action to “smooth out” excessive fluctuations in the foreign exchange market.
