Japan's finance chief may take action to counter the weakening yen
Japanese Finance Minister Shunichi Suzuki stated on Tuesday that he remains open to considering all possible actions to address the yen depreciation.
Suzuki expressed that a depreciated yen has both advantageous and disadvantageous economic impacts, but excessive instability creates uncertainty for business activities. Consequently, this instability could harm the economy, as emphasized by the minister, highlighting Tokyo's emphasis on the speed of market fluctuations rather than specific currency levels. Suzuki reiterated the significance of currencies moving in a "steady manner," underscoring the undesirability of rapid foreign exchange variations.
Suzuki refrained from commenting on the likelihood of Tokyo taking action to address the yen's depreciation. However, he indicated that the pace at which the currency is fluctuating will be a crucial consideration in determining whether or not to engage in market intervention. Suzuki expressed concerns about the potential unintended consequences of discussing currency intervention and stated that if there are significant and exaggerated movements, appropriate responses will be undertaken, without excluding any measures. He further emphasized that the Bank of Japan is actively and attentively observing the developments in the foreign exchange market with a strong sense of urgency.
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