Japan Finance Minister Says Yen's Rapid Fall Clearly Not Driven by Fundamentals

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Japan's finance minister said on Sunday that recent erratic swings in the foreign exchange market and rapid yen weakening are "clearly not driven by fundamentals".

Japan’s finance minister warned that the yen rapid weakening not driven by fundamentals reflects speculative volatility, signalling possible Japan currency intervention as markets await BOJ Governor Ueda’s speech that may hint at a rate hike to stabilise the yen.


"It's our position to issue warnings against such matters," Satsuki Katayama said on a Sunday morning talk show on Fuji Television.

Katayama also reiterated that currency intervention remains possible in dealing with excessively volatile and speculative moves in the yen, in line with a Japan-U.S. joint statement in September that said exchange rates should be market determined.

Markets last week had been looking out for intervention by Tokyo to shore up the declining yen, but the currency stabilised. On Monday, all eyes will be on a speech by Bank of Japan Governor Kazuo Ueda to see whether he signals a likely rate increase at the BOJ's December meeting, which would help lift the currency.

Source: https://www.channelnewsasia.com

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