USD/JPY has lost a few bids on the remarks from Kanda.

Kanda's comments are more forceful than what we have been hearing last week, mentioning speculation, taking steps ...

  • Have been closely watching fx moves with high sense of urgency
  • Will take appropriate steps to respond to excessive weakness of yen without excluding any measures
  • Yen's current weakness is due to speculation, not reflecting fundamentals
  • In close communication with foreign authorities
  • Current yen weakness does not reflect fundamentals
  • Yen weakness based on speculative moves has negative effect on economy
  • Yen weakness from speculative moves is not good under any circumstances
  • Says he doesn't have a specific forex level in mind, when asked about 'defence line'
  • Will make comprehensive decision looking more at whether there is excessive moves rather than levels
  • Sudden forex moves are not desirable
  • Welcomes BOJ's decision for ending unconventional easy steps

  • Long-term interest rate differentials between Japan and US have clearly widened

Japan's Finance Ministry's Vice Finance Minister for International Affairs Kanda. He is the official who will instruct the BOJ to intervene, when he judges it necessary. Often referred to as Japan's 'top currency diplomat'.

kanda yen Japan 2