Japanese Authorities Discussing Weak Yen and Potential Market Intervention

TOKYO: Emergency Meeting Held by Japanese Authorities

Japanese authorities recently gathered for an emergency meeting to address concerns about the weakening yen. They indicated their readiness to intervene in the market to prevent what they deemed as disorderly and speculative movements in the currency.

Yen’s Rally Post-Meeting Announcement

Following this news, the yen surged from a 34-year low of 151.97 per U.S. dollar. Top currency diplomat Masato Kanda emphasized that they were willing to take any necessary steps to counter disorderly FX shifts.

Timeline of Bank of Japan’s Foreign Exchange Interventions

Here is a chronological overview of the Bank of Japan’s interventions in the foreign exchange market:

March 27, 2024: Bank of Japan, the Finance Ministry, and Japan’s Financial Services Agency convened a meeting to discuss potential intervention amid the yen’s decline to a 34-year low against the dollar.

Oct. 21-24, 2022: Amid significant fluctuations in the dollar-yen exchange rate, sources attributed a more than 7-yen drop in the dollar on Oct. 21 to possible yen buying by authorities.

Sept. 7, 2022: Government spokesperson Hirokazu Matsuno expressed concerns over rapid and one-sided movements in the currency market as the yen weakened beyond 143 per dollar.

June 10, 2022: A joint statement by Japan’s government and central bank highlighted worries about sharp yen depreciation beyond 134 per dollar.

Aug and Oct 2011: Interventions were conducted to prevent excessive yen gains that could impede recovery from the economic aftermath of the earthquake and tsunami in March 2011.

March 18, 2011: The G7 nations intervened collectively to counter the yen’s surge to unprecedented levels post the earthquake.

Sept. 15, 2010: After the dollar hit a 15-year low against the yen, Japan intervened for the first time in six years to stem the yen’s rise.

Additional Interventions: The Bank of Japan’s actions extend through various historical junctures, addressing currency fluctuations and economic challenges.

Transition to a Floating Yen:

Following these interventions, Japanese monetary authorities opted to allow the yen to float freely against the dollar in 1973.

($1 = 151.3600 yen)