Japan’s finance chief helped draw a line — for now — under the rapidly unraveling yen with comments Friday that indicated the government is keeping a close eye on foreign-exchange markets.
(Bloomberg) — Japan’s finance chief helped draw a line — for now — under the rapidly unraveling yen with comments Friday that indicated the government is keeping a close eye on foreign-exchange markets.
The currency reversed its earlier declines against the greenback after Finance Minister Shunichi Suzuki said sudden moves in the yen are not desirable and that moves in the FX market need to be closely monitored. The yen moved to be little changed on the day at around 140.20, after earlier weakening to 140.80, a level unseen in close to a quarter of a century.
The move came amid a broad weakening of the dollar fueled by lower front-end Treasury yields in the wake of the US jobs report.
The comments from Suzuki come in the wake of a huge weakening of the yen that has prompted speculation about potential intervention by the Japanese government to prop up the currency, something it hasn’t done since 1998. The yen has plummeted nearly 18% this year against a surging dollar and is the worst performer among Group-of-10 peers.
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