Strengthening Dollars against Yen at 34-Year High Could Prompt Intervention from Japan’s Gov’t

The US dollar was up 0.25% against the yen to 151.95, reaching the highest level since 1990 and could potentially prompt the Japanese government to intervene in the currency exchange market.

Japan finance minister Shunichi Suzuki stated on Tuesday that the country would not rule out any measures to rein in the weakening yen, while adding that though the move of the currency held both positive and negative effects, the volatility from the circumstances caused uncertainty among business operations and hurt the economy.

Suzuki noted that Japan focused more on velocity of market moves rather than on specific currency levels and emphasized that it is important for currencies to move stably to reflect economic fundamentals.

Meanwhile, Suzuki refused to comment on the possibility for the government to intervene in the currency movement and stated that any statement regarding the intervention could send unintended effects on the market, while also suggesting that the government’s decisions depended on the speed of the currency’s fluctuations.