© Reuters. Japanese yen banknotes are seen in this illustration photo taken on June 15, 2022. REUTERS/Florence Low/Illustration/File photo
Written by Takaya Yamaguchi and Tetsushi Kajimoto
TOKYO (Reuters) – Top Japanese currency officials on Wednesday intensified their warnings of the yen’s current weakness, saying authorities would respond appropriately if moves become excessive, and echoed similar comments by the finance minister on Tuesday.
Finance Minister Shunichi Suzuki said that unilateral moves were seen in the yen’s slide, necessitating appropriate action by Japanese authorities if the trend becomes excessive.
“It is important that currencies move steadily,” Suzuki told reporters, reflecting economic fundamentals.
He added, “We will respond appropriately to excessive currency movements if necessary,” but he shied away from specifying a specific currency level at which Tokyo would intervene.
Japanese policy makers argue that the decisive factor in intervention is the speed of the currency’s movements rather than any specific level.
However, investors are eyeing the 145 yen threshold to intervene, which is the level around which the government intervened in the market in September.
The Japanese currency fell 0.36% against the dollar to a low of 144.02 overnight, the lowest level since November 10.
“We are closely watching the currency’s moves with a strong sense of urgency,” Japan’s top currency diplomat, Masato Kanda, told reporters earlier on Wednesday. “We will respond appropriately if it becomes excessive.”
Japan last rarely intervened in buying yen and selling dollars in September and October.