Authorities will take ‘appropriate’ action if exchange rates experience excessive volatility.

Gelonghui, December 22nd | Following the yen’s renewed weakening after last week’s central bank meeting, Japan’s top foreign exchange official, Jun Mitamura, stated on Monday that authorities would take “appropriate” actions if there is excessive volatility in the exchange rate, warning of the possibility of forex intervention. Mitamura noted, “The recent movements in the foreign exchange market have shown unilateral and sharp fluctuations, which I find concerning. We will respond appropriately to excessive volatility.” Mitamura’s statement echoed remarks made by Japanese Finance Minister Satsuki Katayama late last Friday. Katayama stated that an appropriate response would be given to excessive, speculative fluctuations in the yen, underscoring the government’s high level of concern over the yen’s sharp depreciation, which has driven up import prices and increased living costs for households.