TOKYO: Japanese Prime Minister KISHIDA Fumio said on Friday recent sharp, one-sided yen declines were undesirable, repeating the government’s warning to investors against pushing down the currency too much.
“The weak yen has various positive and negative effects on the economy. But sharp, one-sided yen declines, such as those seen recently, are undesirable,” Kishida told parliament.
Japan’s dollar-selling, yen-buying intervention conducted last month reflected the government’s view that it cannot turn a blind eye to “repeated, excessive volatility” driven by speculative trading, he said.
The comments came after the yen touched 145.04 per dollar on Friday, close to its 24-year low of 145.90 hit last month which prompted Japanese authorities to intervene.
The yen has weakened against the dollar as investors focused on the widening policy diverence between the Bank of Japan, which has pledged to keep interest rates ultra-low, and the U.S. Federal Reserve, which has hiked interest rates aggressively to combat soaring inflation.