Intelasia East Asia News – The Japanese government and the BOJ will meet later on Thursday. after the yen fell to a 24-year low

The government and the Bank of Japan will hold a meeting later on Thursday, they said, after the yen fell to its lowest level in 24 years against the US dollar.

The tripartite meeting involving the Ministry of Finance, the BOJ and the Financial Services Agency was last held in June, when a rare statement was released expressing concern over the rapid depreciation of the yen.

The yen has fallen further since then and Japanese government officials have warned of its rapid and one-sided declines against the dollar in recent days.

Finance Minister Shunichi Suzuki said on Wednesday the government would take “necessary measures” if the current trend continues, in his strongest verbal warning. But he didn’t elaborate when asked if such responses would include any government intervention to support the yen.

Japan last intervened in the currency market with selling dollars and buying yen in 1998.

So far, verbal warnings from Japanese officials have failed to reverse the trend of a strong dollar against the yen, as financial markets have priced in widening interest rate differentials between Japan and United States.

The contrast has become more evident. The BOJ remained unchanged on its dovish stance as the US Federal Reserve aggressively raised interest rates and another rate hike is expected later this month.

The yen was trading in the 143 area against the dollar on Thursday in Tokyo, after approaching the 145 mark overseas on Wednesday.

https://mainichi.jp/english/articles/20220908/p2g/00m/0bu/051000c

Category: Japan


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