— Azumi: Japan Intervention In Line With G20 Paris Communique
— Japan Azumi: To Judge If Should Intervene In Timely Manner
— Japan Azumi: Recent Yen Move Excessive and Disorderly
— Japan Azumi: Stock Price Drops Due Strong Yen Hurting Profits
TOKYO (MNI) – Japanese Finance Minister Jun Azumi said on Tuesday
that he will closely watch developments in the foreign exchange market
including today’s move and decide whether further intervention is needed
in a timely manner.
A day after Tokyo conducted what appeared to be a massive forex
intervention to sell yen for dollars, Azumi told reporters, “I will
continue to monitor closely including today’s movement.”
“I will judge (whether further intervention is needed) in a timely
and appropriate manner, by watching closely.”
The dollar stood above Y78 in Asian morning trade on Tuesday after
Japan’s intervention, its third this year, temporarily pushed it up
above Y79 from its record low of Y75.32 hit on Monday.
Azumi said he will repeat Japan’s view that the recent yen exchange
rates do not reflect economic fundamentals when he attends with Prime
Minister Yoshihiko Noda the G20 leaders’ summit in Cannes, France on
Thursday and Friday.
He said that Tokyo intervened on Monday as it judged the recent yen
moves have been “excessive and disorderly.”
The minister sought to justify the move by saying Japan’s latest
action was line with the communique issued after the meeting of the G20
finance ministers and central bank governors held on Oct. 14-15 in
Paris.
The group said: “We reiterate that excess volatility and disorderly
movements in exchange rates have adverse implications for economic and
financial stability.”
Japan’s stock prices have been falling because Japanese firms’
profits are being squeezed by severe economic conditions including the
strong yen, said Azumi.
He said the fiscal stimulus from the third disaster-response
supplementary budget totaling Y12 trillion, which is expected to be
approved in parliament in coming weeks, should help support the domestic
stock market.
tokyo@marketnews.com
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