JAPAN'S FINANCE MINISTER ASSURES NECESSARY ACTION AFTER YEN HITS LOWEST SINCE 1986
Japanese Finance Minister Shunichi Suzuki said Japan would take necessary action to defend the Yen and look for sudden, one-sided moves as the country's currency slid to its lowest levels since 1986, Bloomberg reported on Thursday.
“It is desirable for the exchange rate to move in a stable manner,” Suzuki said Thursday morning. “Sudden, one-sided moves are not desirable. We are strongly concerned about the impact on the economy. We will analyze the background of this move with a high sense of urgency and take the necessary action as needed," Bloomberg quoted him as he addressed the reporters on Wednesday.
Suzuki did not comment on the currency's level, saying it would affect the market. The report said his comments largely align with Vice Finance Minister Masato Kanda's stance on refusing to comment on the currency level as the currency came under pressure.
The Japanese currency declined to as low as 160.87 per dollar, lower than the levels at which officials intervened in the market earlier this year. In mid-morning dealings in Tokyo, the yen traded at 160.45 per dollar.
The yen has been falling for the last three years and has almost lost one-third of its value since 2021
The value of a currency rises or falls in relation to supply and demand in the market.
According to multiple reports, one factor behind the fall of the yen is that investors are selling it and continuing to sell it, especially due to the difference between the interest rates of the Federal Reserve and the Bank of Japan.
The US Federal Reserve benchmark interest rate is currently at 5.25 per cent to 5.50 per cent, and the Bank of Japan’s benchmark rate is at around 0.10 per cent.
For many years, Japan has kept its interest rates low or negative to encourage economic spending and boost bank lending.
Earlier this year, Japan reversed its negative interest rate monetary policy after 17 years due to inflation concerns.
2024-06-27T06:20:00Z dg43tfdfdgfd
