Japanese Finance Minister Shunichi Suzuki speaks during the presidential press conference during the G7 meeting of finance ministers and central bank governors, at Toki Messe in Niigata, Japan, Saturday 13 May 2023.
Swimming pool | Via Reuters
Japanese Finance Minister Shunichi Suzuki on Friday supported monetary interventions by his country’s policymakers if the yen The situation took abrupt directions that began to impact households and businesses.
Speaking to reporters at the annual meeting of the Asian Development Bank in Tbilisi, Georgia, he said it was desirable for exchange rates to move in a stable manner.
“When there is excessive movement, it may need to be mitigated,” he told CNBC’s Dan Murphy, according to a translation.
The finance minister declined to comment when asked whether current levels of the yen were appropriate. He also would not say whether his ministry had intervened recently in the currency market, amid intense speculation.
On Wednesday, the currency strengthened by more than 2% to trade near 153 against the dollar, which is likely due to intervention, according to some market analysts. Japanese authorities have yet to issue an official statement confirming their role in supporting the currency.
“The government has refused to disclose whether it intervened or not, but I don’t think many people have any doubts,” Nicholas Smith, Japan strategist at CLSA, told CNBC earlier this week.
A weak yen against the greenback can harm the economy by raising import costs and Suzuki’s comments on Friday confirm that policymakers are closely monitoring the exchange rate.
The yen was trading at 152.85 against the dollar on Friday evening, Asian time. In recent decades, as other global central banks have tightened policies, Japan has maintained its ultra-loose strategy.
—Shreyashi Sanyal of CNBC contributed to this article.
cnbc
