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Japanese Foreign Minister Kanda Says Yen Weakness Does Not Reflect Fundamentals

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TOKYO: Japan’s top foreign exchange diplomat said Monday that the yen’s current weakness does not reflect fundamentals, in his latest warning about the yen’s “great slide” against the dollar.

“As for currencies, the dollar/yen ratio has seen large fluctuations of 4 percent in the last two weeks alone,” Masato Kanda, vice finance minister for international affairs, told reporters.

“It didn’t reflect the fundamentals and I feel something strange about that.”

Kanda called the yen’s recent movements “speculative.” He said he would not rule out any measures, but was ready to respond appropriately to currency developments, which could deal a blow to people’s livelihoods due to rising costs imports.

He said the weak yen was having a negative effect on the economy, adding that he did not have a specific exchange rate in mind when asked about lines of defense. He said he was closely monitoring currency movements with a sense of urgency.

Japan last intervened in the foreign exchange market in October 2022 by massively buying yen and selling dollars when the yen’s weakening accelerated to a 32-year low near 152 yen per dollar .

It was trading around 151.27 early Monday morning.

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