Japanese finance officials increase their cautionary stance on yen depreciation

TOKYO – Japanese currency officials in a press conference on Wednesday expressed concern over the yen’s current weakness and stated that they would take appropriate action if the currency movement becomes excessive. This statement echoed remarks made by Finance Minister Shunichi Suzuki on Tuesday.

Suzuki pointed out that there were one-sided movements in the yen’s slide, and if this trend intensifies, the Japanese authorities would intervene accordingly. He emphasized the importance of stable currency movements that reflect economic fundamentals.

While Suzuki did not specify a particular currency level at which intervention would occur, Japanese policymakers believe that the velocity of currency moves is the determining factor rather than a specific level.

However, investors are closely monitoring a potential intervention if the yen falls to a threshold of 145 against the US dollar, a level at which the Japanese government previously intervened in September.

The Japanese currency weakened by 0.36 percent against the greenback, reaching its lowest level since November 10 at 144.02.

Japan’s top currency diplomat, Masato Kanda, also emphasized the urgency of monitoring currency movements and stated that appropriate measures would be taken if the movements become excessive.

Japan last conducted yen-buying and dollar-selling interventions in September and October.

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