Japan’s FinMin warns against excessive yen weakness

Japan’s Finance Minister Katsunobu Kato restated Tokyo’s concern about excessive foreign exchange fluctuations and warned speculators that authorities are prepared to intervene to stabilise the weakening yen.

“There is no change to our stance,” Kato said when asked about the yen’s persistent weakness at a regular news conference.

It’s important for currencies to move in a stable manner reflecting fundamentals. The government has been alarmed by foreign exchange moves, including those driven by speculators. Appropriate action will be taken against excessive moves, he added.

Kato expressed serious concern about the currency market situation last week, describing it as alarming and indicating the government’s increased worries about the weakening yen.

The yen remained close to a five-month low below 157 per dollar, with a 4.7 per cent decline this month. Traders are watching closely for any potential intervention from Japanese authorities.

Attribution: Reuters

Subediting: M. S. Salama