Japan resumes intervention drumbeat after yen’s best day in May

(From Bloomberg)

Japanese Finance Minister Taro Aso is letting the currency market know what he considers to be excessive moves that could push the government toward intervention for the first time since 2011.

A two-day move of 5 yen in either direction would be considered one-way and lopsided, Aso said in parliament on Tuesday, adding that the government has no intention of further lowering the currency to boost competitiveness and absolutely no intention of devaluing the yen in a sustained manner. The last time the yen strengthened about 5 yen versus the dollar in two days was after the Bank of Japan left policy unchanged April 28.

“The yen declined as far as 105, 106 per dollar and it’s now around 109 yen, so if I were to say it’d be good for it to settle around there that would immediately be news, so I need to tone down my remarks,” Aso told lawmakers in Tokyo.

The yen fell 0.2 percent to 109.40 per dollar as of 12:45 p.m. in Tokyo from Monday, when it jumped 0.8 percent in the biggest gain since April 29. It has weakened more than 3.5 percent since reaching an 18-month high of 105.55 on May 3. Read more


Categories: Asia Unhedged, Japan

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