2023-09-05 23:05:00
Finance Minister Masato Kanda said on the 6th that the depreciation of the yen in the foreign exchange market was “dramatic fluctuations,” and added, “If this trend continues, the government will be open to all possible options. We want to respond appropriately without excluding them,” he said, restraining the market. He told reporters inside the Treasury Department.
dollar and yen banknotes
Photographer: Keith Bedford/Bloomberg
Finance Minister Kanda emphasized that it is desirable for the exchange rate to reflect the fundamentals and remain stable. “There are speculative behaviors, or movements that cannot be explained by fundamentals, and we are watching them with a high degree of urgency,” he said.
In response to Finance Minister Kanda’s remarks, the yen exchange rate once morest the US dollar on the 6th rose 0.2% from the previous day to 147.37 yen to the US dollar. Yukio Ishizuki, a senior currency strategist at Daiwa Securities Co., said in response to Kanda’s remarks, “This is the first step toward strengthening verbal intervention.” If the yen weakens further, the tone will strengthen further, he said.
On the 5th, overseas time, dollar buying intensified due to an increase in US corporate bond issuance, rising US long-term interest rates once morest the backdrop of high crude oil prices, and sluggish economic statistics in China. The yen was at a depreciating level.
The last time the Japanese currency authorities intervened in the foreign exchange market to buy the yen was on October 24, 2018, when the dollar/yen pair was in the high 149 yen range. In addition, on the 21st, when the exchange rate rose to 151.95 yen, the yen-buying intervention was implemented. On September 22, the Bank conducted its first yen-buying intervention in regarding 24 years when the yen had depreciated to 145.90 yen.
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