Japanese Chief Cabinet Secretary Yoshimasa Hayashi stated on Tuesday that authorities would take relevant measures in response to excessive currency fluctuations. This warning follows the yen weakening to the critical level of 160 per dollar.
At yet another press conference, Hayashi, who serves as the main government spokesperson, stressed that excessive exchange rate volatility is undesirable as it negatively impacts demand from businesses and households.
He noted that they are closely monitoring currency movements and would respond to excessive volatility as needed.
His statement follows repeated warnings from officials about the risks associated with sharp currency fluctuations, highlighting the economic impact of a weak yen.
Earlier on Tuesday, the Minister of Finance of Japan Shunichi Suzuki mentioned in an interview with TBS that exchange rates should remain stable and align with fundamental economic indicators.
"We would respond appropriately to excessive currency moves," he noted. Suzuki was traveling to Seoul on Tuesday to attend a bilateral meeting with his South Korean counterpart.
The weakened yen hovered around 160 per dollar on Tuesday, nearing a 34-year low of 160.245. This level prompted Tokyo's 9.79 trillion yen ($61.33 billion) foreign exchange intervention in late April and early May.
While government officials have refrained from commenting on whether current market movements are excessive, traders remain on alert for possible government intervention.
The yen came under pressure as the Bank of Japan disappointed investors this month by not scaling back its large bond purchases as some had anticipated.
Login in Personal Account
105