Japan warns of action against excessive yen volatility
exchange-rate volatility, repeating his warning to yen bears as Tokyo tries to prevent a destabilising fall in the currency.
Suzuki stopped short of threatening to take «decisive action» against excessive moves, language the minister used last week when the yen slumped to a 34-year low, suggesting officials are keeping their powder dry as they watch how currency moves play out.
«All we can say is that we will take appropriate action against excessive volatility, without ruling out any options,» Suzuki told a regular news conference on Tuesday, when asked about the yen's continued falls.
The yen has been on a downtrend despite the Bank of Japan's decision last month to end eight years of negative interest rates, as traders interpreted its dovish language as signalling that the next rate hike will be some time away.
U.S. Federal Reserve Chair Jerome Powell's remarks on Friday that there was no need «to be in a hurry to cut» interest rates kept the dollar firm by cementing market expectations that the gap between U.S. and Japanese rates will stay wide.
Markets remain on alert for the chance of intervention by Tokyo as the dollar hovers around 151.610 yen in Asia on Tuesday, near the 34-year high of 151.975 hit on Wednesday.
On the day the yen hit 34-year lows, Suzuki said Tokyo will take «decisive steps» against excessive currency moves. The language is considered by markets as the strongest warning by authorities that currency intervention was nearing.
Japanese authorities, including Suzuki, had not used the
