Finance Minister Katayama stated on the morning of the 16th that the foreign exchange market “needs to be watched with a high level of tension.” The previous day, he also said he would “act without hesitation if necessary,” once again signaling a stance of responding flexibly to market fluctuations.
On the 15th, the finance minister emphasized that the message issued when Japan and the United States moved in coordinated fashion to intervene in the currency market was “completely unchanged.” He further made clear that he would move to act without hesitation if deemed necessary.
The latest remarks came amid persistently jittery trading in the yen in foreign exchange markets. With market participants on alert for potential currency intervention by the Japanese government and the Bank of Japan, the finance minister has now signaled verbal restraint on consecutive days.
The series of statements is seen as aimed at conveying to both domestic and international audiences that Japanese authorities intend to continue monitoring the market closely, given the impact that abrupt currency fluctuations can have on the real economy and corporate activity.
finance.biggo.com