Japan Issues Fresh Warning against Sharp Yen Falls

Reuters

12:14 JST, June 27, 2024

TOKYO (Reuters) – Japanese Finance Minister Shunichi Suzuki said on Thursday authorities would take necessary actions on currencies after the yen slid to a 38-year low against the dollar.

“It’s desirable for exchange rates to move stably. Rapid, one-sided moves are undesirable. In particular, we’re deeply concerned about the effect on the economy,” Suzuki told reporters.

“We are watching moves with a high sense of urgency, analyzing the factors behind the moves, and will take necessary actions,” he said.

The Japanese currency has fallen some 2% in June and 12% for the year against a resilient dollar as it continues to be hammered by stark interest rate differentials between the U.S. and Japan.

The yen JPY=EBS stood at 160.63 per dollar in Asia on Thursday, remaining a fraction away from the 38-year low of 160.88 hit overnight on Wednesday.