Japanese Finance Minister Shunichi Suzuki said on Friday (Sep 2) that Tokyo will take “appropriate” action as needed on the yen’s slide to a fresh 24-year low against the dollar, signalling the chance of currency intervention to address volatile moves.

“My impression is that currency market volatility has become somewhat high recently,” Suzuki told a news conference.

“Excessive, disorderly currency moves could have a negative impact on the economy and financial conditions,” he said. “We will respond appropriately as needed, working closely with authorities of other countries.”

The remarks came after Japan’s top government spokesperson warned again on Friday that the authorities were watching currency moves with a high sense of urgency.

“It’s important for currencies to move stably reflecting fundamentals. Sharp volatility is undesirable,” Chief Cabinet Secretary Hirokazu Matsuno told a news conference.

“Currency market volatility is heightening recently, so the government will closely watch exchange-rate moves with a high sense of urgency,” he said, repeating comments he made on Thursday.

The dollar hit a new 24-year high of 140.23 yen in overnight trading on Thursday, breaking above the psychologically-important 140 threshold on prospects of aggressive US interest rate hikes. The dollar stood at 140.02 yen in early Asia trade on Friday. 

Source: Reuters