Ready n Japan take all possible measures to counter extremely volatile currency movements, the chief said on Tuesday Minister Yoshimasa Hayashi, keeping markets alert to the possibility of further intervention to support it Birth.
“It is important that exchange rates move steadily, reflecting the fundamentals. Excessive volatility is undesirable,” Hayashi said at a regular press conference.
“We will carefully monitor the developments of the exchange rate and will be ready to take all possible measures,” he said.
Hayashi declined to comment on whether Tokyo had intervened in the foreign exchange market to support the yen for two consecutive days last week. Reuters:.
Traders suspect that Tokyo has intervened in the market raise the currency Stocks fell to a 38-year low on Thursday after a cooler-than-expected U.S. inflation report lifted Gen.
Its details Bank of Japan showed that the country spent up to 3.57 trillion yen ($22.51 billion) for interventions on Thursday of last week. Markets will watch the release of money market data later on Tuesday to see if Tokyo also intervened last Friday.
It Birth to write 3% jump 157.40 against the dollar after Thursday’s suspected 7/11 intervention.
But it lost most of its ground, settling at 158.62 on Tuesday, not far from the 160 level seen as the Japanese authorities’ line in the sand for monetary intervention.
Some analysts see similarities between last week’s alleged intervention and the intervention on May 1, when its president’s mild comments; Federal Reserve Bank Jerome Powell they made the dollar heavier.
In both cases, Tokyo likely intervened when the dollar had already weakened against the yen, said Masafumi Yamamoto, chief currency strategist at Mizuho Securities.
“This time the intervention came at a time when the dollar/yen was not necessarily rising sharply,” he said. “This suggests that the authorities were more concerned about the level of the yen below 160 (against the dollar) than the rate of its decline.”