Japanese Finance Minister Shunichi Suzuki said that after a large-scale intervention last week aimed at supporting the yen, the government will continue to take measures against speculative movements.
"We will closely monitor the markets and react as necessary," Suzuki said, confirming that the government does not rule out further interventions in case the situation in the foreign exchange market worsens. Now USD/JPY is trading at 143.93, with an increase of 0.42%.
The Finance Minister also signaled a common position between the government and the Bank of Japan. "We have a common understanding about the situation in the foreign exchange market, and we will continue to cooperate with the Bank of Japan in solving this problem," Suzuki added.
Meanwhile, the U.S. Treasury Department refrained from explicitly approving Japan's intervention, but said it understood the move. However, the lack of US participation in the yen-buying operation is likely to diminish the effectiveness of the move.