Weakening Yen Prompts Strong Statements from Japanese Government: "Considering All Measures to Respond"

Despite raising interest rates, the yen's weakness has continued, prompting the Japanese government to issue strong statements day after day. On the 26th, following the previous day, Japanese Finance Minister Suzuki Shunichi said that all measures would be considered to curb the yen's depreciation.

According to Nihon Keizai Shimbun (Nikkei), Finance Minister Suzuki said at a press conference after the cabinet meeting that regarding the exchange rate, "We will not exclude any measures and will respond appropriately to excessive movements."

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Finance Minister Suzuki stated, "The impact of the yen on the economy has both positive and negative aspects," adding, "Excessive fluctuations increase uncertainty in corporate activities. It is undesirable if it adversely affects the economy."

When asked about the timing of intervention in the exchange rate, he said, "It could have an unexpected impact on the market," and added, "We are watching closely with high tension."

Finance Minister Suzuki's remarks this time are stronger than his previous statement on the 21st, when he said he would "watch with high tension" regarding the yen's weakness.

The day before, Kanda Masato, Director-General of the Japanese Ministry of Finance, said, "The current yen weakness does not align with fundamentals and is clearly driven by speculation," adding, "Excessive fluctuations caused by speculation cannot be tolerated as they adversely affect the national economy."

Although the Bank of Japan (BOJ) raised interest rates for the first time in 17 years, narrowing the interest rate gap between the U.S. and Japan, the yen's weakness continues. Japan intervened in the currency market in 2022 due to the yen's depreciation. At around 11 a.m. on this day, the dollar-yen exchange rate was 151.32 yen.

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