Japan Signals Readiness to Intervene in Forex Markets

Politics

Tokyo, Sept. 8 (Jiji Press)--Japanese authorities do not rule out foreign exchange interventions to curb an excessive decline in the yen's value, Masato Kanda, vice finance minister for international affairs, indicated Thursday.

The yen's recent moves are "obviously an excessive fluctuation and can't be justified by economic fundamentals," Kanda told reporters after a meeting of officials from the Finance Ministry, the Financial Services Agency and the Bank of Japan.

"If such moves continue, we won't rule out any measures," he said, adding, "We're ready to take necessary action in the foreign exchange market."

"We've seen a one-sided and rapid decline in the yen on the back of speculative moves over the past few days," Kanda said, adding that the Japanese government and the BOJ are "extremely concerned" about such moves.

Japanese authorities last intervened in currency markets to buy yen for dollars in 1998 when the country was in a financial crisis.

[Copyright The Jiji Press, Ltd.]

Jiji Press