At the Tokyo foreign exchange market on the 25th of the week, the yen has strengthened somewhat, and currently stands at 151 points to the dollar, following a statement by Finance Minister Kanda to reporters to discourage the depreciation of the yen. It is trading in the lower half of the yen table.
Finance Minister Kanda: ``We will not exclude any means''
Finance Minister Kanda, who is in charge of foreign exchange policy, told reporters around 8 a.m. on the 25th, ``We are closely monitoring the situation in the foreign exchange market with a sense of nervousness.We are seeing large fluctuations in the exchange rate between the yen and the dollar. "This is a direction that is not in line with the fundamentals (basic conditions of the economy), and I feel uncomfortable about it."
In addition, Finance Minister Kanda said, ``I believe that the current depreciation of the yen is clearly due to speculation. Excessive fluctuations due to speculation have a major negative impact on the national economy and cannot be tolerated. We will take appropriate action in response to these changes without excluding any means."
Finance Minister Kanda was also asked, ``Does every measure include decisive measures?'' In response, he answered, ``Literally, we will not rule out any measures and will respond according to the situation.We are always ready.'' He strongly discouraged market movements.
Movement to buy yen and sell dollar in response to finance minister's statement
In the foreign exchange market at the beginning of the week, the yen exchange rate was trading at around 151.40 yen to the dollar, but Finance Minister Kanda said, ``We will respond appropriately to excessive fluctuations without eliminating all means.'' In response to his statement, there was a movement to buy yen and sell dollars.
A market source said, ``Following the remarks by Finance Minister Kanda, there is a sense of caution in the market about market intervention by the government and the Bank of Japan.''