Japan is reacting properly to extreme FX moves, the finance minister says

Japan is reacting properly to extreme FX moves the finance minister says

October 19, 2022: -On Tuesday, Japanese Finance Minister Shunichi Suzuki said authorities would respond appropriately to excessive currency moves driven by speculators as the yen decreased to a fresh 32-year low to the dollar.

Suzuki, speaking to reporters, refused to comment when asked whether authorities are working on stealth intervention to help the weakening currency.

“We cannot tolerate excessive currency moves caused by speculators,” Suzuki said. “We are near watching currency moves with a sense of urgency.”

Suzuki later told parliament that the government is willing to take appropriate action “decisively” against speculative-driven, excessive leaps in the yen. When questioned by an opposition lawmaker about what he meant by decisive action, Suzuki said, “We interfered in the currency market in the previous world.”

Prime Minister Fumio Kishida said speculative-driven rapid currency movements were problematic at a parallel parliament session.

Kishida brushed aside the prevailing market view the Bank of Japan’s ultra-easy monetary policy existed mainly behind the yen’s sharp declines, which says that currency rates move on various factors, not just U.S.-Japan interest rate differentials.

“The Bank of Japan determines economic policy based not just on currency moves but broad factors, such as economic and price developments as well as the impact on small and midsize firms,” Kishida said.

Japan spent 2.8 trillion yen in dollar-selling and yen-buying in the previous month when authorities intervened to prop up the yen for the first time since 1998.

Speculation remains that authorities may have intervened in the market without announcing, although Suzuki declined to comment.

“Generally speaking, there are times when we intervene by making announcements and some other times when we do without it,” Suzuki said, declining to comment further.

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Japan is reacting properly to extreme FX moves, the finance minister says
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Japan is reacting properly to extreme FX moves, the finance minister says
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Japanese Finance Minister Shunichi Suzuki said authorities would respond appropriately to excessive currency moves driven by speculators as..
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The Women Leaders
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