Japanese Ministry of Finance: "Volatility Caused by Speculation... No Comment on Foreign Exchange Market Intervention"

Dollar Exceeds 160 Yen for the First Time in 34 Years
Rises to 157 Yen Range, Falls to 154 Yen Range
"Cannot Overlook Negative Impact on National Economy"

On the 29th, Japanese financial authorities commented on the yen-dollar exchange rate surpassing 160 yen per dollar for the first time in 34 years before falling back to 154 yen, stating "no comment" regarding market speculation about intervention, according to Kyodo News.

Masato Kanda, Financial Bureau Director of the Ministry of Finance, reportedly avoided making specific remarks about whether the authorities intervened in the foreign exchange market that day.

[Image source=Yonhap News]

On that day, the yen-dollar exchange rate exceeded 160 yen per dollar for the first time since April 1990, marking 34 years. In the afternoon, it plunged more than 4 yen from the 159 yen range to the 155 yen range, then rose back to the 157 yen range before falling again by more than 2 yen to the late 154 yen range.

If the authorities directly intervened, it would be the first such action in about 1 year and 6 months since October 2022.

Regarding the exchange rate fluctuations, Director Kanda expressed the view that they were "excessive fluctuations caused by speculation." He also emphasized that "the severe fluctuations in the yen's rate and their adverse effects on the national economy cannot be overlooked."

On the timing of announcing any foreign exchange market intervention, Director Kanda explained, "We will announce intervention results at the end of May as usual." The market is speculating that, faced with the yen's record weakness, the Japanese government and the Bank of Japan may have intervened in the foreign exchange market by buying yen and selling dollars to curb further yen depreciation.