Published by Makiko Yamazaki
TOKYO (Reuters) – Top Japanese finance officials said on Friday the government is “alarmed” by recent foreign exchange movements and is ready to intervene if speculative moves are deemed excessive, as the yen declined rapidly.
Against the Japanese yen, the dollar rose to a high of 157.93 on Friday, its highest level since July, after the Bank of Japan kept interest rates unchanged on Thursday and its governor gave little indication of how soon which could push borrowing costs up.
“We have been seeing unilateral and sharp movements recently,” Finance Minister Katsunobu Kato told a regular press conference on Friday.
“As we are alarmed by recent currency market developments including those driven by speculators, we will take appropriate measures against excessive movements,” he said.
Japanese policymakers rarely describe currency market conditions as alarming, reflecting the government's heightened concerns about the sliding yen.
Speaking to reporters later in the day, Japan's top currency diplomat Atsushi Mimura confirmed the government's stance, saying it has been concerned about currency movements and indicating it was prepared to take appropriate measures. take
The BOJ's rate-setting meeting on Thursday ended hours after the US Federal Reserve cut interest rates but signaled a more cautious path to easing next year, suggesting interest rate differentials between the US and Japan shrinks faster than previously expected.
Asked about rate differences between the US and Japan and the BOJ's communication style, Mimura, the vice finance minister for international affairs, declined to comment.
Japan last intervened to buy the yen in July to support its currency after it fell to a 38-year low below 161 per dollar.
Kato, at the press conference, also said that the financial leaders of the Group of Seven nations (G7) held an online meeting last night under the presidency of Italy to discuss aid to Ukraine and the impact of artificial intelligence on the global economy .
Kato said he and BOJ Governor Kazuo Ueda joined the call.
