
A banknote of Japanese yen is seen in this illustration picture taken June 15, 2022.
11:20 JST, September 6, 2023
TOKYO (Reuters) – Japan’s top currency diplomat Masato Kanda said on Wednesday that Japanese authorities won’t rule out any options on currencies if speculative moves persist, a comment apparently warning against a sell-off in the yen.
It was the strongest warning since mid-August, when the Japanese currency slid past the key threshold of 145 per dollar. Since then, the authorities have stopped firing warning shorts, keeping traders guessing on Japan’s intervention strategy.
Kanda, vice minister of finance for international affairs, was speaking to reporters after the dollar broke above 147 yen JPY= to edge closer to 148 yen overnight, this year’s strongest ever against the Japanese currency.
The dollar has gained momentum on the view the Federal Reserve may raise rates one more time to cope with persistently solid inflation, while the Bank of Japan is expected to continue powerful easing to stoke demand-pull inflation driven by strong wage growth. Such policy diversion is behind the yen’s weakness.
“We won’t rule out any options if speculative moves persist,” Kanda told reporters. “Needless to say, it’s important for currency moves to reflect fundamentals.”
Japanese core consumer prices, running at above 3% for more than a year has shown little signs of sustainable inflation accompanied by solid wage gains.
"News Services" POPULAR ARTICLE
-
India Says It Attacked Pakistan, Pakistani Kashmir
-
Japan’s Nikkei Stock Average Ends Higher; NTT Data Surges on Takeover Report (UPDATE 1)
-
Putin Declares 3-Day May Ceasefire to Mark 80 Years Since World War Two Victory
-
Prime Minister Ishiba Reiterates Demand for U.S. Removal of Auto Tariffs
-
Panasonic to Cut 10,000 Employees, Expects to Book $900 Million Reform Costs
JN ACCESS RANKING
-
U.S. Holds Fire Over Yen Exchange Rate Targets; Bessent Said to Understand Negative Impact on Markets
-
Rents Mark 30-Year-High Rate of Rise; Decrease in Disposable Income May Dampen Personal Consumption
-
Japanese Govt Mulls Raising Number of Cars to be Imported Under Simplified Screen System in U.S. Tariff Negotiations
-
Japan Must Boost Its ‘Indispensability,’ Urges JETRO Chair; Convince United States That Cooperation Will Be Beneficial
-
Japan Presses U.S. to Scrap 25% Auto Tariffs as Ishiba Refuses Partial Trade Deal; No Deal Without ‘Total Rollback’