Washington: The United States understands Japan’s currency market intervention as a measure to stem excessive foreign exchange volatility, a Treasury Department spokesperson said Thursday.

The comments came after Japan sold yen for dollars on the foreign exchange market earlier in the day for the first time in about 24 years.

“The Bank of Japan today intervened in the foreign exchange market.

We understand Japan’s action, which it states aims to reduce recent heightened volatility of the yen,” the spokesperson said.

“We did not participate in the intervention,” the spokesperson added.

The Group of Seven advanced economies, including Japan and the United States, are committed to market determined foreign exchange rates.

The U.S. Treasury has said that foreign exchange intervention “should be reserved only for very exceptional circumstances with appropriate prior consultations.”

Treasury Secretary Janet Yellen in July acknowledged signs of speculation in the foreign exchange market.

JIJI Press