Japan would take necessary measures if the yen falls below seven-month lows versus the dollar, said Finance Minister Shunichi Suzuki on Friday.<\/p>\n\n\n\n
Suzuki cautioned investors against dumping the yen too much when it fell below 145 to the dollar, a level that made speculators concerned of probable intervention by Japanese authorities.<\/p>\n\n\n\n
As the yen fell below 145 last September, the government intervened in markets to strengthen the currency for the first time in 24 years.<\/p>\n\n\n\n
“It is important for currencies to move stably reflecting fundamentals,” Suzuki told reporters.<\/p>\n\n\n\n
“Sharp and one-sided moves are seen in the currency market lately. The government is watching currency market moves with a great sense of urgency. We will respond appropriately if the moves become excessive.”<\/p>\n\n\n\n
A weak yen has both positive and negative effects on the economy, depending for example on the export or import sectors.<\/p>\n\n\n\n
However, it is not positive considering the current situation where government policy focuses on steps to mitigate the impact of rising prices, Suzuki added.<\/p>\n\n\n\n
Generally, yen weakening pushes up import costs of food and energy for resource-poor Japan, which would deal a blow to consumers struggling to make ends meet.<\/p>\n\n\n\n
Suzuki stopped short of saying he was ‘deeply concerned’ or declaring an intention to take ‘decisive steps’, which were the phrases he used as a prelude to the last time authorities intervened in the currency market.<\/p>\n\n\n\n
On Friday, the Japanese currency struck 145.07 per dollar in early Asia trade, its lowest in over seven months, but it had steadied to 144.80 by late morning.<\/p>\n\n\n\n
The yen has depreciated by more than 9% against the dollar so far this year.<\/p>\n\n\n\n
Japanese authorities have said the velocity of currency moves are the deciding factor for intervention, not specific levels.<\/p>\n","protected":false},"excerpt":{"rendered":"
Japan would take necessary measures if the yen falls below seven-month lows versus the dollar, said Finance Minister Shunichi Suzuki on Friday. Suzuki cautioned investors against dumping the yen too much when it fell below 145 to the dollar, a level that made speculators concerned of probable intervention by Japanese authorities. As the yen fell […]<\/p>\n","protected":false},"author":6,"featured_media":4660,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[44,43,45],"tags":[11,9,12],"class_list":{"0":"post-4659","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"category-news","9":"category-top-stories","10":"tag-business","11":"tag-news","12":"tag-world"},"yoast_head":"\n