Japan finance minister warns against excessive weakening as yen strikes 7-mth low
2023.06.30 00:20
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© Reuters. A banknote of Japanese yen is seen with a currency exchange rate graph in this illustration picture taken June 16, 2022. REUTERS/Florence Lo/Illustration
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By Tetsushi Kajimoto
TOKYO (Reuters) -Japan would take appropriate steps should the yen weaken excessively, Finance Minister Shunichi Suzuki said on Friday after the currency plumbed seven-month lows against the dollar.
Suzuki warned against investors pushing the yen too low as the currency weakened past 145 per dollar on Friday, a level which kept speculators wary of potential intervention from Japanese authorities.
“It is important for currencies to move stably reflecting fundamentals,” Suzuki told reporters. “Sharp (OTC:) and one-sided moves are seen in the currency market lately. We will respond appropriately if the moves become excessive.”
Suzuki stopped short of saying he was ‘deeply concerned’ or declaring intention to take ‘decisive steps’, which were the phrases he used as a prelude to the last time authorities intervened in the currency market.
The intervention launched in September last year, when the yen weakened past 145 per dollar, was the first in 24 years.
On Friday, the Japanese currency struck 145.07 per dollar in early Asia trade, its lowest in over seven months, but it had steadied to 144.80 by late morning.
Japanese authorities have said the velocity of currency moves are deciding factor for intervention, not specific levels.
