Japanese Finance Minister Shunichi Suzuki declared today (April 23) that Japan stands prepared to employ necessary actions to address the heightened volatility in the foreign exchange market, indicating a willingness to utilize all available options. This assertion comes as the yen continues its descent, nearing the significant threshold of 155 yen per dollar.
Mr. Suzuki emphasized that the Japanese government closely monitors fluctuations in the foreign exchange market and remains poised to take prompt action as warranted. Concurrently, Japan maintains active communication with financial regulators of other nations to navigate market uncertainties.
Despite the Bank of Japan (BOJ) initiating its first interest rate hike in 17 years, concerns persist regarding potential direct interventions by Japanese authorities in the market to counteract yen depreciation.
The yen’s downward trajectory intensified following market speculations about the Federal Reserve (Fed) delaying interest rate cuts until June, subsequent to the Fed’s implementation of aggressive monetary policies aimed at curbing inflation.
Addressing reporters, Mr. Suzuki stated, “We are closely monitoring market developments and reaffirm our commitment to address excessive volatility. We will not hesitate to employ any available measures to achieve this objective.”
Traditionally, Japanese authorities issue verbal warnings before initiating market interventions. The last instance of such intervention occurred at the close of 2022 when Japan intervened by purchasing yen and selling dollars.