TOKYO (Reuters) – Japanese Finance Minister Shunichi Suzuki said on Friday that authorities were “deeply concerned” about the impact of “rapid and biased” foreign exchange movements on the economy, with the yen falling to a 38-year low above 161 yen. per dollar.
Speaking at a regular news conference, Suzuki said that authorities would respond appropriately to excessive currency movements and that confidence in the Japanese currency would be maintained.
“The government is closely monitoring developments in the foreign exchange market with a great sense of urgency,” Suzuki said, adding that efforts to continue moving forward with financial reform were crucial.
The yen fell to its lowest since 1986 at 161.155 per dollar on Friday morning, with no overnight drop in US bond yields or data showing strong gains in consumer prices in Tokyo to halt the Japanese currency’s downward slide.
Finance Ministry officials have stepped up warnings against a weaker yen this week, signaling a readiness to intervene in the currency market.
Japanese authorities are facing renewed pressure to halt sharp declines in the yen’s value, as traders focus on the interest rate differential between Japan and the United States.
Tokyo spent 9.8 trillion yen ($60.91 billion) to intervene in the foreign exchange market at the end of April and early May, after the Japanese currency hit a 34-year low of 160.245 to the dollar on April 29.
($1 = 160.8900 yen)