August 13, 2022

Japan’s Finance Minister Says He Will Work With BOJ on Possible Measures to Stem Yen’s Fall | The mighty 790 KFGO

By Tetsushi Kajimoto

TOKYO (Reuters) – Japanese Finance Minister Shunichi Suzuki on Tuesday reiterated concerns about the yen’s recent rapid weakening, saying the government would coordinate all appropriate measures with the Bank of Japan as the currency slid to its lowest level in 24 years against the dollar.

Suzuki told reporters that it was important for currencies to move in a stable manner, reflecting economic fundamentals, because excessive volatility and disorderly movements can harm economic and financial stability.

Japan will maintain close communication with the monetary authorities of the advanced nations of the Group of Seven (G7) based on their currency agreement.

“A rapid weakening of the yen has been seen recently in the forex market and I am concerned,” Suzuki said. “We will be watching the movements of the currency market and their impact on the economy and prices carefully with an even greater sense of urgency.”

Japan’s government and central bank issued a rare joint statement on Friday expressing concern over the sharp decline in the yen and some investors are wary of monetary intervention or a hesitant commitment by the BOJ to fix bond yields.

The yen was at 134.00 to the dollar after trading at 135.22 on Monday. It is down 14% on the dollar this year.

(Reporting by Tetsushi Kajimoto; Editing by Jacqueline Wong & Shri Navaratnam)