The sharp fall in the yen is a concern for Japanese authorities. Recent episodes of sharp yen falls prompted such verbal interventions (jawboning). This time too.
Suzuki:
- No comment on fx levels
- Rapid yen moves inappropriate
- Excess fx volatility , disorderly fx movements could have adverse effect on economy, financial stability
- Japan's govt will respond appropriately to exchange rate following G7 agreement on currencies while keeping close communication with us, other authorities
- Desirable for currencies to move stably reflecting economic fundamentals
- No comment on Bank of Japan Governor Kuroda's remark that households are becoming accepting of price hikes
Yen had a huge drop since the weekend:
