The Japan Finance Minister Shunichi Suzukihas stated that respond appropriately to sharp currency movements and that they are closely monitoring currency movements with a high sense of urgency. However, he did not comment on the levels.
He said that the intervention in the foreign exchange market has had some effects and that they cannot tolerate too much volatility in speculative trading.
Japan’s recent currency intervention has produced “certain effects,” Suzuki said after the government spent a record amount in support of the yen last month.
Meanwhile, the yen fell to 148.80 against the dollar earlier this week and came under pressure after the very dovish Bank of Japan kept interest rates ultra-low, bucking the trend of other major central banks.
BoJ Governor Haruhiko Kuroda said the central bank is nowhere near raising interest rates as inflation in Japan is likely to fall short of its 2% target in the coming years.
Source: Fx Street
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