Japanese Prime Minister Fumio Kishida has warned that an excessive movement of the yen due to speculation cannot be overlooked, and has promised to act and intervene “with a high degree of vigilance” to support the currency once again if necessary.
“Should there be excessive volatility, we will take action,” Kishida said in a speech on the New York Stock Exchange on Thursday, hours after Japan bought yen to prop up the currency for the first time since 1998.
The remarks underscored Tokyo’s determination to continue to fight against sharp yen declines, which have caused pain for households and retailers by driving up already rising prices for raw materials and fuel imports. It is rare for Japan’s prime minister to make explicit comments on currency movements.
Japan intervened in the foreign exchange market on Thursday to buy yen for the first time since 1998 to support the ailing currency after the Bank of Japan (BOJ) stuck with extremely low interest rates.
As a result
of the movement that took place during the late Asian hours, the dollar fell by more than 2 percent to around 140.3 yen. As a result, there was no sign of further intervention or assistance from other central banks. The dollar stood at 142.36 yen at 23:16 GMT.
Friday is a public holiday in Japan, although the country’s top monetary diplomat, Masato Kanda, told reporters on Thursday that it would not affect Tokyo’s decision as to whether and when to intervene again.