Reuters
source: reuters
Japan stands ready to act against excessive foreign exchange volatility at any time, while ensuring that any yen-buying, dollar-selling intervention is conducted in a way that avoids pushing up U.S. Treasury yields, officials said on Monday.
“As we have stated previously, we will respond appropriately at any time if necessary” against excessive currency volatility, Finance Minister Satsuki Katayama told reporters after the first day of a Group of Seven finance leaders’ two-day gathering.
She told her counterparts at the G7 meeting that fluctuations in crude oil prices continue to spill over into foreign exchange rates and government bond yields.
Tokyo may have spent nearly 10 trillion yen ($63 billion) since launching its latest round of yen-buying intervention starting April 30, central bank data indicates, marking Japan’s first foray into the market in almost two years.
After rising to around 155 per dollar in early May, the yen has since surrendered more than half of its gains, coming close to the 160 mark that is seen as the Japanese authorities’ line in the sand for intervention.
