Japan's top government spokesperson said the country will keep working with the United States to maintain orderly yen moves after the currency slid following the Federal Reserve's Wednesday rate hike. The yen fell to around 155.50 in Asia on Thursday, and the Bank of Japan is set to raise its own rate to a 31-year high on Friday.
The Fed's interest rate hike on Wednesday triggered a broad dollar rise, and the yen fell to around 155.50 in Asia on Thursday. That is off a seven-month high of 152.89 hit earlier this month on bets of speedier Bank of Japan rate hikes.
Tokyo points to joint action with Washington
Chief Cabinet Secretary Minoru Kihara told a regular news conference that Japan will continue to communicate closely with the US on currency moves. According to Reuters: "We will continue to communicate closely with the US Treasury Department" and strive toward maintaining an orderly currency market, he said, when asked about the Fed's move.
He added that Japan's stance has not changed since Japan and the US conducted joint intervention at the end of July. Japan and the United States launched a rare joint yen-buying intervention on July 31 and vowed to take further action if needed, a move that pushed the yen well off a 40-year low near 164 hit earlier in July.
Finance minister points to BOJ coordination
Finance Minister Satsuki Katayama told a separate news briefing that Japan has stated its determination to address excessive currency volatility when launching the joint intervention. She also said she expected the BOJ to closely coordinate with the government and conduct appropriate monetary policy to achieve its 2% inflation target. Both Kihara and Katayama were re-appointed to their posts in a cabinet reshuffle announced later on Thursday.
BOJ decision looms on Friday
The BOJ is set to raise interest rates to a 31-year high of 1.25% on Friday. Analysts say the widely expected move is unlikely to prop up the yen unless Governor Kazuo Ueda delivers a hawkish message on the pace of future rate hikes.
Source: Investing.com
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