Japan Says It’s Ready to Intervene in Currency Markets 24 Hours a Day If Needed

The yen inched lower toward a key level against the dollar Monday, even as Japan’s top currency official warned that authorities stand ready to intervene in currency markets 24 hours a day if necessary.

“If there are excessive currency fluctuations, it has a negative impact on the national economy,” said Vice Finance Minister Masato Kanda. “In the event of excessive moves based on speculation, we are prepared to take appropriate action.”

Kanda was speaking as the yen traded ever closer to 160 to dollar and the weak point of 160.17 set on April 29, when Japan is last thought to have waded into the market. The yen slipped 0.1% to 159.91 at 9:01 a.m. in Tokyo.

Japan has acknowledged that it spent ¥9.8 trillion intervening in currency markets during a month-long period between April 26 and May 29. Authorities didn’t specify dates for the action, but trading patterns indicate there were two major rounds of intervention on April 29 and May 1. Foreign reserves data indicate that Japan likely sold Treasuries to help fund that action.

Global authorities are in touch with each other on a daily basis on a wide range of issues including currencies, Kanda said.

Kanda said his counterparts in Washington do not have a problem with Japan’s intervention. “The most important thing for them is transparency,” he said.

A decision by the US to add Japan to its currency watchlist had no impact on Japan’s currency strategy, according to Kanda.

This article was generated from an automated news agency feed without modifications to text.