©Reuters. Japan does not rule out an intervention to stop the yen’s rapid decline
Tokyo, Sep 14 (.).- Japan does not rule out any option to deal with the recent volatility of the yen, including intervention in the foreign exchange market, Japanese Finance Minister Shunichi Suzuki said today, reiterating the government’s concern .
Suzuki was “very concerned” about the “sudden” changes that the yen is experiencing, an “undesirable” trend that he believes is due to a “speculative movement” that worries the Executive, he said Wednesday in statements to journalists collected by the public broadcaster NHK.
“If these movements continue, I think we have to respond to them without ruling out any option,” said the minister, who when asked expressly if they are thinking of intervening in the market to stop the rapid devaluation of the yen, replied: “It is correct think that’s the case.”
Suzuki’s remarks are the latest in a series of comments from the Japanese authorities on the recent volatility of the yen and the rapid decline that the Japanese currency is experiencing this week due to fears of a tightening of the US central bank’s monetary policy due to inflation.
The yen experienced high volatility today, from the average range of 143 units per dollar to 144.96, touching the barrier of 145 units, a renewed minimum in 24 years, before moderating its fall after the statements of several high-profile officials, including government spokesman Hirokazu Matsuno.
“It is important that the exchange rates remain stable,” Matsuno told a news conference, reiterating that they are closely monitoring the evolution of the currency.
The yen is under pressure on the prospects that the US central bank will tighten its monetary policy for inflation and distance itself from the position of its Japanese counterpart, which opts to keep its interest rates ultra-low.
The publication of the latest data on prices in the United States, which have registered a higher than expected increase, has only fed this concern in view of the celebration next week of the monthly meetings on monetary policy of the Federal Reserve (Fed) and the Bank of Japan (BoJ).
This fear weighed today among investors in the Tokyo Stock Exchange, where in the absence of trading its main index, the , fell 2.7%.