TOKYO, June 27 (Xinhua) — Japanese Finance Minister Shunichi Suzuki on Tuesday reiterated that “appropriate” steps could be taken to take care of the yen’s sharp drop versus the U.S. dollar.
“We’ve seen some rapid, one-sided moves lately. The government will continue to closely monitor developments in the currency market with a sense of urgency and respond appropriately to excessive moves,” Suzuki advised a press briefing on the matter.
Suzuki has mentioned as regards to the U.S.-dollar-yen pairing that extra volatility in international trade markets is undesirable and forex strikes must be primarily based on financial fundamentals.
Financial authorities’ current warnings concerning the yen’s drop and hints at an intervention into the forex market to handle the yen’s fast decline versus the U.S. dollar have curbed the Japanese forex’s fall considerably.
Numerous occasions within the earlier yr Japan intervened into the forex market, launching yen-buying operations utilizing U.S. {dollars} to redress the yen’s weak point, with the forays into the market following a sequence of comparable warnings reminiscent of these issued by Suzuki lately.
The U.S. Federal Reserve’s aggressive rate of interest hike coverage in comparison with the Bank of Japan’s ultra-easy coverage has seen and can seemingly see the continued widening of the rate of interest hole between each nations, with the divergent insurance policies a number one issue within the yen’s weak point versus the U.S. dollar.