TOKYO : Japan’s top currency diplomat Masato Kanda said on Monday authorities will take appropriate steps if there are excessive forex moves, and the addition of Japan to the U.S. Treasury’s foreign exchange monitoring list would not restrict their action.
Speaking to reporters, Kanda said currency interventions would not be tied to specific currency levels, but that Japan has policy leeway to ensure that foreign exchange rates move in a stable manner reflecting fundamentals.
“We will firmly respond to moves that are too rapid or driven by speculators,” he said. “If no action is taken to such moves, people, companies and households would suffer.”
The yen has been under pressure after the Bank of Japan’s decision this month to hold off on reducing bond-buying stimulus until its July meeting. The dollar traded at 159.84 yen on Monday.
The Bank of Japan, at the behest of Japan’s finance ministry, spent some 9.8 trillion yen ($61.64 billion) to pull the currency out of a 34-year trough of 160.245 per dollar hit on April 29.
Kanda also said the U.S. Treasury’s foreign exchange monitoring list had “absolutely no impact” on Japan’s policy options.
A U.S. Treasury report issued on Thursday added Japan to its foreign exchange monitoring list alongside six countries that were on the previous list.
