The government’s approach to dealing with swings in the foreign exchange market hasn’t changed, according to Shunichi Suzuki, the finance minister of Japan, who stated this on Friday that there are numerous aspects to take into account when evaluating whether they are “excessive” moves.
When determining whether to interfere in the currency market to curb excessive volatility, analysts claim that Japanese authorities are concentrating on the rapidity of currency fluctuations rather than targeting at any precise levels.
Investors frequently believe that excessive volatility may be assessed over a day or so. Masato Kanda, the senior currency diplomat for Japan, however, stated this week that any excessive moves might be evaluated as, for example, the time from the beginning of this year, when the yen declined by about 20 yen to the dollar.
When asked about interference and what constitutes an extreme move, Suzuki responded, “There hasn’t been any change in the government viewpoint.
The minister further stated that authorities should consider a variety of variables when deciding what actions qualify as excessive.
Suzuki said that the government will continue to operate in the currency market covertly, meaning officials wouldn’t immediately reveal their actions.