Japanese Finance Minister Shunichi Suzuki affirmed on Thursday that authorities are prepared to take decisive action to address excessive swings in the exchange rate of the yen.
“We are not only monitoring specific levels, such as 152 yen or 153 yen per dollar, but also conducting a thorough analysis of the underlying factors,” Suzuki conveyed to reporters. “We are approaching this matter with a heightened sense of urgency.”
Suzuki emphasized that the destabilizing impact of excessive currency fluctuations is undesirable, stressing the importance of maintaining stable currency movements that reflect economic fundamentals.
These statements come in response to the recent weakening of the yen, which dipped below 153 per dollar, marking its lowest point since 1990, following the release of robust U.S. inflation data on Wednesday. As of Thursday in Asia, the dollar was trading at 152.90 yen.
Masato Kanda, Japan’s chief currency diplomat, echoed Suzuki’s sentiments earlier in the day, acknowledging the rapid decline of the yen and indicating readiness to take appropriate measures.
However, neither Suzuki nor Kanda explicitly labeled the overnight declines in the yen as excessive, and the previous warning of “decisive action” against sharp depreciations of the yen was not reiterated.
Kanda emphasized, “While I do not have a specific dollar/yen level in mind, excessive volatility negatively impacts the economy.” He added, “The recent fluctuations have been rapid, and we aim to respond appropriately to such excessive movements, keeping all options open.”
In response to inquiries regarding potential intervention in the currency market to support the yen, Kanda stated, “We are consistently prepared to address any scenario.”
