Japanese Finance Minister: "Intervention in Yen Market Had an Effect"

Suzuki Shunichi, Japan's Minister of Finance, recently stated on the 4th that the Japanese authorities' intervention in the foreign exchange market was aimed at countering excessive fluctuations and that it had "a certain effect."

According to Nihon Keizai Shimbun (Nikkei) and others, Minister Suzuki said at a press conference that day, "It was to respond to excessive fluctuations caused by speculative movements, etc.," adding, "We will continue to closely monitor foreign exchange market trends and take thorough measures."

Earlier, Japan's Ministry of Finance announced that it intervened in the foreign exchange market with approximately 9.7885 trillion yen (about 86 trillion won) from April 26 to May 29, about a month. Following this, reports emerged locally that Prime Minister Kishida Fumio was concerned that the rapid depreciation of the yen could escalate into a situation similar to the British pound crisis.

The yen-dollar exchange rate is currently trading in the 156 yen per dollar range. Previously, at the end of April, the yen-dollar exchange rate surpassed 160 yen per dollar for the first time in 34 years, but immediately after the Japanese authorities' market intervention was detected, it dropped to the 151 yen range on the 3rd of last month. At that time, the foreign exchange authorities did not confirm whether they intervened in the market but announced the scale of the intervention on the 31st of last month.