Japan finance minister Suzuki says its important for FX to move stably in line with fundamentals
- will keep monitoring the FX market with a sense of urgency
- FX rates should be set by market
- no change in his stance of responding to FX moves in an appropriate way
- Excess FX volatility, disorderly moves can hut the economy
Rinse, repeat yen comments from Suzuki. He has made similar comments many time during the run higher for USD/JPY over previous months. These are a verbal form of FX intervention.
---
To make this post a little more useful, here is Goldman Sachs on how Japan intervenes in the currency:
- FX intervention is carried out under the authority of the Ministry of Finance (MOF)
- The BoJ conducts FX interventions on behalf of and at the instruction of the MOF. The Foreign Exchange Fund Special Account (FEFSA), which falls under the jurisdiction of the MOF, is used for interventions.
- The MOF gives the BoJ specific instructions for FX intervention based on relevant market information provided by the BoJ.
