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HomeLatestJapan poised to intervene in foreign money market once more, stays vigilant

Japan poised to intervene in foreign money market once more, stays vigilant

TOKYO, Sept. 26 (Xinhua) — Japan on Monday mentioned it could intervene within the foreign money market once more if wanted and is monitoring the market with a excessive diploma of vigilance.

Finance Minister Shunichi Suzuki instructed a press briefing on the matter that the federal government is on excessive alert in opposition to speculative yen strikes in opposition to the U.S. dollar and is “strongly concerned about one-sided, rapid yen moves.”

His remarks observe Japan’s yen-buying, dollar-selling operation final Thursday, the primary since 1998.

The operation got here on the heels of the Bank of Japan (BOJ) staying pat on its ultra-loose financial coverage, with Governor Haruhiko Kuroda saying it was unlikely the BOJ would hike its charges within the subsequent few years.

“We took appropriate action against excessive volatility driven by speculators. The intervention has had a certain effect,” Suzuki mentioned.

“There is no change in our stance that we will take further action if needed,” he added.

Following the intervention, the dollar dropped to the 140 yen zone after crossing the psychologically vital 145 yen mark. On Monday, the dollar was buying and selling across the 144 yen line.

Local media cited market analysts as doubting whether or not Japan’s market intervention had any influence in countering the power of the dollar versus the yen, nonetheless, owing to a rising rate of interest hole between the BOJ and the U.S. Federal Reserve.

The Fed, in stark distinction to the BOJ, has been aggressively mountain climbing its charges to fight hovering inflation.

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