Japan’s top currency diplomat, Atsushi Mimura, said on Monday authorities will take “appropriate” action against excessive exchange-rate moves, warning of the chance of intervention after last week’s central bank meeting that caused renewed yen declines.
“The recent foreign exchange moves were one-sided and sharp, and I’m concerned about them,” he told reporters. “We’ll take appropriate actions against excessive moves.”
The remarks followed those by Finance Minister Satsuki Katayama late on Friday that Tokyo would respond appropriately to excessive, speculative moves in the yen, underscoring its concern over sharp yen falls that push up import prices and households’ cost of living.
The Bank of Japan (BOJ) raised interest rates to 0.75 per cent from 0.5 per cent on Friday, taking borrowing costs to levels unseen in three decades and narrowing the rate differential with the U.S. Federal Reserve.