Japanese Finance Minister Shunichi Suzuki stated on Tuesday that he remains open to employing various measures to address the yen's weakness, echoing concerns expressed by the nation's top currency official the day before.
Suzuki acknowledged that a weakened yen can have both positive and negative impacts on the economy. However, he emphasized that excessive fluctuations in currency value could introduce uncertainty for businesses, potentially harming economic stability. Tokyo's priority, he noted, lies in ensuring market stability rather than fixating on specific currency thresholds.
"Sharp currency fluctuations are undesirable," Suzuki remarked to reporters following a cabinet meeting. "It's crucial for currency values to adjust steadily in accordance with economic fundamentals."
On Tuesday morning, the dollar saw a slight retreat against the yen, trading at 151.26, with significant resistance anticipated near the 152 level amid concerns of potential intervention by Japanese authorities. Since the beginning of the year, the dollar has appreciated approximately 7% against the yen.
While declining to comment on the prospect of Tokyo intervening to counter yen weakness, Suzuki hinted that the pace of currency movements would influence any decision to intervene in the market.
"Discussing currency intervention could inadvertently impact market dynamics," Suzuki cautioned. He added, "In the event of excessive volatility, we will respond appropriately, considering all available options."
Japan's last intervention in the currency market occurred in September and October 2022, aimed at halting the yen's decline. Initially triggered when the dollar reached around 145 yen, intervention continued in October as the U.S. currency surged to a 32-year high near the 152 level.
Paraphrasing text from "Investing" all rights reserved by the original author.
