Japan announces that the American yen has “sharply” fallen


  • Finmin defines recent yen moves as rapid and undesirable
  • Government watching FX moves with a sense of urgency – Suzuki
  • Yen marked “strong” moves in talks with US Yellen – Suzuki
  • Suzuki declines to comment on FX intervention, Yellen’s response

TOKYO, April 22 (Reuters) – Japanese Finance Minister Shunichi Suzuki said on Friday the yen’s recent declines were “sharp” and agreed with his U.S. counterpart to communicate closely on currency movements.

The yen plunged to its lowest level in two decades against the dollar as the central bank continued to defend its ultra-low rate policy amid heightened risks of aggressive rate hikes from the US Federal Reserve. Read more

“The government has said rapid currency movements are undesirable. What we are seeing now with the yen are rapid movements, so we will be watching movements closely with a sense of urgency,” Suzuki said. to journalists.

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Suzuki said he did not directly express concerns about the yen’s movements during the meeting with US Treasury Secretary Janet Yellen, but did bring up the currency’s rapid movements as part of his briefing. on the state of the Japanese economy.

“We have confirmed that the monetary authorities of the two countries will communicate closely, in accordance with the exchange rate principles agreed between the members of the G7 and the G20,” Suzuki told reporters after meeting with Yellen in Washington DC on the sidelines of the meetings of the International Monetary Fund.

He declined to comment, when asked about the possibility of Japan intervening in the currency market to stem further falls in the yen and about Yellen’s response to his remarks during the talks.

The yen briefly rose after Suzuki’s remarks, but pared its gains to hover around 128.43 to the dollar on Friday.

Markets focused on whether the United States and the broader G7 group of advanced economies would acquiesce to Tokyo’s concerns about the yen’s recent moves, either in the G7 statement or at the G7 bilateral meeting. Suzuki with Yellen.

In the G7 statement, released Thursday Tokyo time, the leaders said they were closely watching global markets which have been “volatile”, but made no mention of exchange rates.

Suzuki said the G7 is likely to stick to its agreement that markets should determine exchange rates, that the group will closely coordinate currency movements, and that excessive and disorderly exchange rate movements will hurt growth. Read more

Investors believe the yen needs to fall further, with most betting that even government intervention wouldn’t be enough to turn the tide.

“Japanese authorities continue to express concern over yen weakness, but this is unlikely to lead to any real intervention,” said Masafumi Yamamoto, chief currency strategist at Mizuho Securities.

“With G7 and G20 financial leaders expressing no common concern over the decline of the yen, it becomes easier for the dollar/yen to rise in tandem with rising US interest rates,” he said. he declares.

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Reporting by Leika Kihara; Additional reporting by Tetsushi Kajimoto; Editing by Himani Sarkar and Christopher Cushing

Our standards: The Thomson Reuters Trust Principles.

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