© Reuters Japan eyes fresh intervention amid continuing yen devaluation
Tokyo, Oct 3 (.).- The Government of Japan showed today its “determination” to intervene again in the foreign exchange market if it considers it necessary in the face of the continuous devaluation of the , which this Monday once again exceeded the level against the dollar that It already led to an action by the Executive less than two weeks ago.
The dollar was bought today at more than 145 yen, above the red line set by the Japanese government on September 22 to carry out its first intervention in the markets aimed at sustaining the value of the national currency since 1998.
The purchase of yen and sale of dollars by the Executive, worth 2.84 trillion yen (19,000 million dollars), caused a rebound in the Japanese currency, although a few days later it recovered its downward trend against the dollar and other currencies. .
“We carried out an intervention several days ago and we repeat that we will take more decisive action if necessary. There is no doubt that this has served as a warning to speculators,” Japanese Finance Minister Shunichi Suzuki said today at a press conference. press.
Suzuki stressed that the foreign exchange markets “must move within stability”, and added that the Executive “monitors with a sense of utmost urgency” the evolution of the Japanese currency.
The yen accumulates a fall of 21% against the dollar so far this year, mainly due to the growing divergence between the interest rate increases applied in the United States and the monetary policies of the Bank of Japan, in favor of maintaining measures of stimulus that include ultra-low rates.
Global inflation in energy and raw material prices is putting increasing pressure on Japanese imports, an impact that is exacerbated by the depreciation of the yen, which is at its lowest level against the dollar in 24 years.