Japan Warns Against Rapid, Speculative Yen Falls
Tokyo’s Currency Officials Caution Against Yen’s Overnight Surge
Japan’s top currency officials issued a warning against rapid and speculative yen movements, expressing concern over the Japanese currency breaking past 150 yen and its potential negative impact on the trade-reliant economy.
US Inflation Data Drives Dollar to Three-Month Peaks
The dollar surged to three-month peaks as U.S. inflation data for January exceeded expectations, reinforcing the anticipation that the Federal Reserve would maintain interest rates at their current level in March.
Finance Minister Monitors Market Closely
Finance Minister Shunichi Suzuki emphasized the necessity of closely monitoring the market, expressing his concerns about the undesirable impact of rapid currency movements on the economy.
Authorities Ready to Take Action in Forex Market
Japan’s top currency diplomat Masato Kanda assured that the nation would take appropriate actions in the forex market if necessary, citing the rapid and significant weakening of the yen over a short period as detrimental to the economy.
Market Players Speculate on Fed Rate Cuts and BOJ’s Policy
Market players have been speculating about the future pace of the Federal Reserve’s rate cuts and the timing of the Bank of Japan’s exit from its negative interest rates policy.
Japan’s Intervention in the Currency Market
Japan intervened in the currency market three times in 2022 when the yen plummeted to 32-year lows near 152 yen to the dollar, undertaking rare dollar-selling and yen-buying intervention.
Authorities’ Approach to Currency Levels
Japan’s top currency diplomat Masato Kanda clarified that while Japan is not targeting specific currency levels, they are considering various factors such as the rapidity and deviation from fundamentals in currency movements.
