Yen surge ‘extremely worrying’ warns Japan’s finance minister – Telegraph.co.uk
6 months ago Comments Off on Yen surge ‘extremely worrying’ warns Japan’s finance minister – Telegraph.co.uk
“The yen strengthened by five yen in two days. Obviously one-sided and biased, so-called speculative moves are seen behind it,” said Japanese Finance Minister Taro Aso.
“It is extremely worrying,” he said.
The finance minister left on a trip, which will also take him to an annual Asian Development Bank meeting in Germany.
“Tokyo will continue watching the market trends carefully and take actions when necessary,” he added.
A strong currency is damaging for Japan’s exporting giants, such as Toyota and Sony, as it makes their goods more expensive overseas and shrinks the value of repatriated profits.
Aso has reiterated that Japan could intervene in forex markets to stem the unit’s steep rise, saying moves to halt the currency’s “one-sided, speculative” rally would not breach a G20 agreement to avoid competitive currency devaluations.
Japan last intervened in currency markets around November 2011, when it tried to stem the yen’s rise against the greenback to keep an economic recovery on track after the quake-tsunami disaster earlier that year.
Yen surge ‘extremely worrying’ warns Japan’s finance minister – Telegraph.co.uk}