Author: Makiko Yamazaki
TOKYO (Reuters) – Top Japanese financial officials said on Friday the government is “concerned” about recent currency moves and is ready to intervene if speculative moves are deemed excessive, as the value of the yen falls again rapidly.
Against the Japanese yen, the dollar rose to a high of 157.93 on Friday, the highest since July, after the Bank of Japan left interest rates unchanged on Thursday and its president offered few hints on how quickly it could raise borrowing costs.
“Recently, we have witnessed unilateral and harsh moves,” Finance Minister Katsunobu Kato said on Friday at a regular news conference.
“As we are concerned about recent developments in the currency market, including those triggered by speculators, we will take appropriate action against excessive movements,” he said.
It is scarce for Japanese policymakers to explicitly describe the currency market situation as alarming, signaling the government’s heightened concerns about the falling yen.
Speaking to reporters later in the day, top Japanese currency diplomat Atsushi Mimura also reiterated the government’s position, saying he was concerned about currency movements and signaling his readiness to take appropriate action.
Thursday’s BOJ rate-setting meeting ended hours after the U.S. Federal Reserve cut interest rates, but signaled a more cautious path to monetary easing next year, suggesting the U.S.-Japan interest rate differential may not be narrowing as much quickly as previously expected.
Asked about interest rate differences between the U.S. and Japan and the BOJ’s communication style, Mimura, deputy finance minister for international affairs, declined to comment.
Japan last intervened by buying the yen in July to support its currency after it fell to a 38-year low of below 161 per dollar.
At the press conference, Kato also said that financial leaders of the Group of Seven (G7) countries held an online meeting last night under the Italian presidency to discuss support for Ukraine and the impact of artificial intelligence on the global economy.
Kato said he and BoJ Governor Kazuo Ueda joined the conversation.
