Japan’s Top Currency Diplomat: Will take appropriate action if needed

Dhwani Mehta FXStreet

Following the meeting between the Japanese financial authorities, the country’s top currency diplomat Masato Kanda said that he “cannot disclose what was discussed.”

But he said that “we will take appropriate action if needed,” adding that “there are various options in mind.”

Earlier this Friday, the Bank of Japan (BOJ), the Ministry of Finance (MOF) and the Financial Services Authority (FSA) released a joint statement after their high-level talks.

Key takeaways

It is important for currency market to move stably reflecting fundamentals

Rapid swings are undesirable.

Rapid yen weakening is seen recently in the currency market, concerned about it.

Government, BOJ will watch closely moves in the currency market.

Will watch for impact on the economy and prices with a sense of urgency.

Will respond appropriately as needed in the currency market based on G7 agreement.

Market reaction

Japanese verbal intervention combined with a pause in the US dollar advance has dragged USD/JPY sharply lower.

The pair is now trading 0.46% lower at 133.70.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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