Japan’s top financial diplomat, Masato Kanda, has revealed that Japanese authorities are in regular contact with U.S. Treasury Secretary Janet Yellen and other international officials regarding currencies and broader financial markets, Reuters reports.
Constant Dialogue on Currencies
The statement likely indicates Tokyo’s intent to keep market players alert about potential currency intervention to support the Japanese yen, which is currently near the 145-per-dollar level, considered by authorities as a critical point.
Close Contact with the U.S.
Finance Minister Shunichi Suzuki confirmed the ongoing dialogue between Tokyo and Washington on currency movements, although he did not disclose the specifics of the discussions.
Intervention Considerations
Japanese authorities consider the speed of yen falls, the involvement of speculators, and the support of Group of Seven partners, particularly the U.S., when deciding on intervention. Last year, Japan bought the yen for the first time since 1998 to bolster its currency after the Bank of Japan’s decision to maintain an ultra-loose policy drove the yen as low as 145 per dollar.
Hi, I am the Benzinga Newsbot! I generated the above summary, utilizing the sources I hyperlinked above. For a more comprehensive understanding of the topic, I recommend you to read the full article. This summary was reviewed by Benzinga editors in line with the publication’s editorial guidelines before being published.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
