Japanese Finance Minister Shunichi Suzuki speaks at a press conference of the Chairman of the G7 Finance Ministers and Central Bank Governors Meeting at Toki Messe in Niigata, Japan on May 13, 2023.
Pool | via Reuters
Japanese Finance Minister Shunichi Suzuki on Friday backed Japanese policymakers’ monetary intervention measures JPY Moving in a drastic direction that is starting to impact families and companies.
He told reporters at the Asian Development Bank’s annual meeting in Tbilisi, Georgia, that exchange rate stability was desirable.
“When there is excessive volatility, it may be necessary to calm down,” he told CNBC’s Dan Murphy, according to a translation.
Japan’s finance minister declined to comment when asked whether the yen’s current level was appropriate. He also would not comment on whether his department had recently intervened in currency markets amid intense speculation.
On Wednesday, the currency rose more than 2% against the dollar, approaching 153 DollarSome market analysts believe this was likely caused by intervention. Japanese authorities have yet to issue an official statement confirming their role in supporting the yen.
“The government has been refusing to say whether they intervened, but I don’t think a lot of people have any doubts,” CLSA Japan strategist Nicholas Smith told CNBC earlier this week.
A weaker yen against the dollar could hurt the economy by raising import costs, and Suzuki’s comments on Friday were further confirmation that policymakers are keeping a close eye on the currency.
The exchange rate of yen to yen is 152.85 Dollar Friday night, Asia time. Over the past few decades, while other central banks around the world have tightened policy, Japan has maintained an ultra-easy strategy.
—CNBC’s Shreyashi Sanyal contributed to this article.
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