Japan is prepared to intervene against excessive market movements as the yen approaches 160 to the dollar, top currency diplomat Masato Kanda said. Finance Minister Shunichi Suzuki also stressed the importance of stable currency movements reflecting economic fundamentals.
The yen’s recent pressure follows the Bank of Japan’s decision to maintain its bond-buying stimulus. Kanda noted the heightened market caution but stated there are no specific intervention levels. The market views 160 yen as a critical threshold, recalling Japan’s significant intervention in April.
Kanda dismissed concerns about Japan’s addition to the U.S. Treasury’s foreign exchange manipulation list, saying it doesn’t impact policy options. He emphasized that Japan aims to ensure stable exchange rates and protect against speculative moves that could harm the economy.
Source: Reuters