Japanese Finance Minister Shunichi Suzuki addressed the recent weakness of the yen, stating that authorities are prepared to take necessary steps to address excessive exchange rate fluctuations.
Suzuki emphasized that the government is not solely focused on specific exchange rate levels, but rather on analyzing the underlying factors driving the yen's depreciation. He stressed the importance of currency stability reflecting economic fundamentals.
His comments followed the yen's decline to its lowest level since 1990, exceeding 153 per dollar, in response to strong U.S. inflation data.
Earlier, Masato Kanda, Japan's top currency diplomat, acknowledged the rapid pace of the yen's depreciation and indicated that all options remain on the table. However, both Suzuki and Kanda refrained from explicitly labeling the recent decline as excessive or reiterating previous warnings of "decisive action."
Kanda, Vice Finance Minister for International Affairs, emphasized the negative economic impact of excessive volatility, regardless of specific exchange rate levels. He reiterated the government's commitment to responding appropriately to such volatility, without ruling out any potential measures.
When questioned about potential currency market intervention, Kanda affirmed the government's preparedness to respond to any situation.