TOKYO (MNI) – A senior official at the Japanese Finance Ministry
said Thursday that Tokyo will closely watch developments in the foreign
exchange market and continue to act in an appropriate manner, when
needed.
The official, speaking to reporters on condition of anonymity,
declined to comment on the U.S. semi-annual FX report released by the
Treasury department in late December.
The report said on Japan, “Rather than reacting to domestic ‘strong
yen’ concerns by intervening to try to influence the exchange rate,
Japan should take fundamental and thoroughgoing steps to increase the
dynamism of the domestic economy, increase the competitiveness of
Japanese firms – including those in utilities and services – and raise
potential growth.”
The official said Japan’s forex intervention in late October was
“needed,” as the one-sided yen appreciation then would have enhanced
downward risk to the Japanese economy.
He also stressed Tokyo intervened in October after contacting
monetary authorities of other nations.
tokyo@marketnews.com
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[TOPICS: M$A$$$,M$J$$$,MGJ$$$,MGU$$$,M$$FX$]
