Japan finance minister warns against excessive weakening as yen strikes 7-mth low By Reuters
© Reuters. A Japanese yen banknote is seen with a graph of the currency exchange rate in this illustration photo taken on June 16, 2022. REUTERS/Florence Low/Illustration
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Written by Tetsushi Kajimoto
TOKYO (Reuters) – Japanese Finance Minister Shunichi Suzuki said on Friday that Japan will take appropriate steps if the yen weakens excessively after the currency fell to a seven-month low against the dollar.
Suzuki warned investors were pushing the yen too low as the currency slid below 145 against the dollar on Friday, a level that kept speculators wary of possible intervention from Japanese authorities.
“It is important that currencies move in a manner that reflects the fundamentals,” Suzuki told reporters. “Sharp (OTC:) and one-sided movements have been seen in the currency market recently. We will respond appropriately if the movements become excessive.”
Suzuki stopped short of saying he was “very concerned” or announcing his intention to take “decisive steps,” phrases he used as a prelude to the last time the authorities intervened in the currency market.
The intervention that began in September last year, when the yen weakened past 145 yen to the dollar, was the first in 24 years.
On Friday, the Japanese currency recorded 145.07 against the dollar in early Asian trading, its lowest level in more than seven months, but settled at 144.80 by late morning.
Japanese authorities said that the speed of the currency’s movements was the deciding factor for intervention, rather than specific levels.
