Rapid Decline in Yen Value... Japan Does Not Rule Out Market Intervention

"Tense Watch on the Market... Responding to Excessive Movements"

As the value of the yen rapidly declined, the Japanese government indicated the possibility of market intervention.

Masato Kanda, the top official of Japan's foreign exchange authorities and Financial Bureau Director at the Ministry of Finance, told reporters on the 26th that "the recent movement has been rapid and one-sided" regarding the yen's depreciation against the dollar. He also said, "We will watch closely with great vigilance" and warned, "We will respond appropriately to excessive movements."

Regarding the possibility of market intervention, such as the government purchasing yen in the foreign exchange market, he responded, "We are not ruling out any options." Previously, when the yen's value fell to the 140-150 yen range per dollar in September-October last year, the Japanese government and the BOJ intervened in the market by purchasing yen for the first time in 24 years.

On this day, the yen's value against the dollar was at the 143 yen level, the lowest in over seven months since November last year. The yen also fell to the 155 yen level against the euro. While the yen's weakness continues compared to major currencies, it is also declining against the Korean won. As of 5:30 p.m. that day, it was recorded at 913.51 won per 100 yen.

This yen depreciation occurred as major central banks in the US and Europe continue to raise interest rates, while the Bank of Japan (BOJ) maintains a dovish monetary policy. The market expects that the yen's weakness will persist unless Japan changes its monetary policy stance.

This content was produced with the assistance of AI translation services.