Harvest Global Markets :

Finance Minister Shunichi Suzuki of Japan stated that appropriate measures would be taken if the yen experiences excessive weakening. This came after the currency reached its lowest point against the dollar in seven months. Suzuki cautioned against investors selling the yen too aggressively, as breaching the 145 level may trigger intervention by Japanese authorities. He emphasized the importance of stable currency movements that reflect underlying fundamentals. Suzuki expressed concern about recent volatile and one-sided currency market fluctuations, and the government will respond accordingly if such movements become excessive. While a weak yen can have positive and negative effects on the economy, considering the current focus on mitigating the impact of rising prices, it is not viewed as favorable. Suzuki did not use phrases like being ‘deeply concerned’ or declaring an intention to take ‘decisive steps’ as he did in the previous currency intervention. As of late morning, the yen had steadied at 144.80 against the dollar after hitting 145.07 in early Asia trade. So far this year, the yen has depreciated by over 9% against the dollar. Japanese authorities have emphasized that the velocity of currency movements, rather than specific levels, is the key factor for intervention.