Japan’s top FX diplomat escalates warning against weak yen
2023.06.25 20:18
© Reuters. A Japan Yen note is seen in this June 22, 2017 illustration photo. REUTERS/Thomas White/Illustration
By Tetsushi Kajimoto
TOKYO (Reuters) – Japan’s top currency diplomat Masato Kanda said on Monday authorities will respond to any excessive moves in the currency market, warning that recent yen moves were “rapid.”
When asked about the chance of currency intervention, Kanda told reporters he would not rule out any options.
“Regardless of the direction, it’s generally not good for the economy if exchange rates move excessively in a way that deviates from economic fundamentals,” Kanda said.
He added that authorities were focusing on the pace of moves in the yen, rather than its levels.
Investors have been selling yen after the Bank of Japan (BOJ) kept interest rates ultra-low last week and vowed to maintain its massive stimulus, in contrast to other central banks tightening monetary policy to combat rising inflation.
The dollar hit a seven-month high against the yen at 143.63 in New York on Friday.
