Japan prepares action as yen falls to 32-year low against dollar
Japan’s Finance Minister Shunichi Suzuki reiterated the government's readiness on Thursday to take “appropriate action” against excessive currency volatility in the wake of the yen's fall to 32-year lows driven by red-hot US inflation data.
“We cannot tolerate excessive volatility driven by speculative moves. We’re watching market developments with a strong sense of urgency,” Suzuki said in a news conference on Thursday after attending the G20 finance leaders' meeting in Washington.
Speaking at the same news conference, Bank of Japan Governor Haruhiko said it was “inappropriate” to raise interest rates now in light of Japan's still-weak economy and modest inflation.
The dollar briefly hit a 32-year peak of 147.665 yen after the release of stronger-than-expected US inflation data, before falling below 147 yen. It stood around 147.275 yen in early Asia trade on Friday.
Japan intervened in the currency market last month to arrest sharp yen falls, driven largely by the policy divergence between aggressive US interest rate hikes and the Bank of Japan's resolve to keep monetary policy ultra-loose.
Reuters
