TOKYO (MNI) – Finance Minister Jun Azumi said in parliamentary
testimony Friday that Japan will continue countering speculative moves
in the foreign exchange market, regardless of dollar/yen levels.

He told the House of Representatives Budget Committee that Tokyo’s
solo interventions last year had “some impact” on the dollar-yen
exchange rate, which was initially lifted by about three yen from a
record low of Y75.32 hit on Oct. 31 and generally stayed in a range of
Y77 to Y78 through yearend.

Azumi said he instructed a forex intervention when the dollar fell
to a critical level of Y75.63 and Japan stopped massive dollar buying
for yen when the U.S. currency had recovered to Y78.20.

Asked to confirm the MOF’s commitment to prevent a sharp yen rise,
the minister said, “I think we need to try to coordinate with other
countries for a concerted intervention first by telling them what the
current yen’s appreciation means to Japan’s economy in the global
context.”

“But since it is not easy to see it happen in the current global
environment, we will take decisive action if necessary by making Japan’s
own and my own decisions.”

Azumi said Japan has been arguing that current yen forex rates do
not reflect economic fundamentals.

“We will not hesitate to intervene not only on forex levels but
also to counter speculators when they try to move the currency market,”
he said.

The latest MOF data showed that Japan intervened in the foreign
exchange market on Oct. 31, when the yen hit a fresh life-time high of
Y75.32 versus the dollar, and conducted further yen-selling operations
from Nov. 1 to Nov. 4.

Japan did not intervene in the forex market between Dec. 29 and
Jan. 27 after having spent Y9.09 trillion on selling yen for the U.S.
currency in the final quarter of 2011.

Last year Tokyo also conducted currency market intervention in
August and March, with the latter operation forming part of a
coordinated move by the Group of Seven industrialized nations to aid
Japan in the wake of the March 11 earthquake disaster.

tokyo@marketnews.com
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