Japanese Finance Minister Shunichi Suzuki takes part in a news conference in Marrakech, Morocco, on Oct. 13.SUSANA VERA/Reuters
Japanese Finance Minister Shunichi Suzuki said on Monday that the government would keep monitoring the currency market and respond appropriately, as the yen weakened to its lowest in more than a year to near 152 to the dollar.
Despite the currency’s weakening to a level that triggered dollar-selling and yen-buying intervention by authorities in October 2022, Suzuki steered clear of phrases that have in the past signalled intervention.
Intervention data shows that authorities have stayed away from a foray in the currency market since then.
Instead of using expressions used then, such as “ready to take decisive steps” or “deeply concerned” about the weak yen, Suzuki declined to comment on currency levels.
Authorities tend to attach greater importance to the velocity of currency moves rather than sheer levels.
“Currencies should be set by the market reflecting fundamentals. Excessive moves are undesirable, which is our basic stance,” Suzuki told reporters when asked about the government’s steps on the foreign exchange market.
The yen, down almost 14 per cent this year, weakened again although markets remained alert to possible intervention to shore it up.
The dollar rose to 151.85 yen on Monday, its firmest level since October 2022. It was last up 0.2 per cent, having rallied around 1.4 per cent last week in its biggest weekly jump against the yen in three months.