The Japanese government increased its rhetoric regarding the threat to intervene in the Japanese Yen’s appreciation, despite the looming G7 meeting this week. Earlier in the trading session, the Yen had been higher as uncertainty over disappointing Chinese economic data pushed the drive to safe havens. Japan’s Minister of Finance for International Affairs, Masatsugu Asakawa, reported that the G7 continues to discuss how disorderly currency movements should be dealt with, given that excessive volatility could have a negative impact on an economy. The Japanese government has been trying to gain support for its actions against a rising Yen.
As reported at 10:39 am (BST) in London, the USD/JPY was trading higher at 108.9065 Yen, a gain of 0.24%; the pair’s trading band ranged from a peak of 108.9900 Yen to a trough of 108.4750 Yen. The EUR/JPY was 0.30% higher at 123.2335 Yen; today’s range was from 122.5876 Yen to 123.2850 Yen.
Japan’s Government Not Beholden to US Report
The Japanese government has been trying to gain support for its actions against a rising Yen. Recently, Asakawa had been reporting as saying that the country would not be obliged to abide by the latest currency report from the U.S. Treasury Department which cautions against a unilateral intervention the forex markets. Given the current stance, analysts believe that the Bank of Japan is likely to continue to get more aggressive on the rising Yen once the G7’s meeting is no longer an issue.