Japanese Finance Minister Shunichi Suzuki said today that the government will take appropriate steps against excessive fluctuations in the yen. He also warned that the government “does not rule out any options,” but did not comment on whether Tokyo intervened in the exchange rate market overnight to prop up the yen.
“Exchange rates should change steadily under the influence of markets, reflecting fundamental factors. Sudden movements are undesirable. The government is very closely monitoring the development of the market. We are ready to take the necessary actions against excessive volatility, without excluding any options,” Suzuki added.
Meanwhile, Japan's top currency diplomat Masato Kanda said authorities are considering various factors, including implied volatility, when determining whether the yen's movement was excessive. Kanda said he met with Prime Minister Fumio Kishida today to “discuss the economy as a whole.” Kanda declined to say whether he had discussed the weak yen with the prime minister, but told reporters that any intervention would be aimed at volatility, not the level of the yen. The last time the government intervened to buy the yen was in September and October last year.
Yesterday, the USD/JPY fell by 0.55% after briefly exceeding the psychologically important level of 150 yen per dollar against the background of the US labor market report.