{"id":1657629,"date":"2022-09-26T05:07:46","date_gmt":"2022-09-26T09:07:46","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1657629"},"modified":"2022-09-26T05:07:57","modified_gmt":"2022-09-26T09:07:57","slug":"japan-warns-against-speculative-yen-moves-markets-wary-of-further-intervention","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/japan-warns-against-speculative-yen-moves-markets-wary-of-further-intervention\/","title":{"rendered":"Japan warns against speculative yen moves, markets wary of further intervention"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">22<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fjapan-warns-against-speculative-yen-moves-markets-wary-of-further-intervention%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1657629&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>By Tetsushi Kajimoto and Leika Kihara<\/p>\n<p>TOKYO\/OSAKA (Reuters) -Japanese Finance Minister Shunichi Suzuki said authorities stood ready to respond to speculative currency moves, a fresh warning that comes days after Tokyo intervened in the foreign exchange market to stem yen falls for the first time in over two decades.<\/p>\n<div id=\"div-gpt-ad-1663871513696-art-1\">\n<\/div>\n<p>Suzuki also told a news conference on Monday the government and the Bank of Japan (BOJ) were on the same page in sharing concerns about the currency\u2019s sharp declines.<\/p>\n<p>\u201cWe are deeply concerned about recent rapid and one-sided market moves driven in part by speculative\u201d trading,\u201d Suzuki told the news conference. \u201cThere\u2019s no change to our stance of being ready to respond as needed\u201d to such moves, he added.<\/p>\n<p>BOJ Governor Haruhiko Kuroda said the central bank was likely to retain its ultra-loose monetary policy for the time being, but added that its commitment to keep interest rates at \u201cpresent or lower levels\u201d may not necessary stay unchanged for years.<\/p>\n<p>At last week\u2019s news conference, Kuroda said the BOJ likely won\u2019t change its guidance on interest rates for \u201ctwo to three years.\u201d<\/p>\n<p>\u201cIt won\u2019t be that long, such as two to three years,\u201d Kuroda said, referring to the BOJ\u2019s guidance on how long interest rates could remain unchanged.<\/p>\n<p>Kuroda echoed Suzuki\u2019s warning that rapid yen moves were undesirable, but stressed his resolve to maintain the ultra-low interest rates blamed by analysts for accelerating the Japanese currency\u2019s declines.<\/p>\n<p>\u201cThere are heightening fears of a global economic slowdown,\u201d which could affect Japan\u2019s economy, Kuroda said.<\/p>\n<p>\u201cIf risks to the economy materialise, we will obviously take various monetary easing steps without hesitation as needed,\u201d he told a meeting with business executives in Osaka, western Japan.<\/p>\n<p>The remarks came after the government\u2019s decision on Thursday to intervene in the currency market to stem yen weakness by selling dollars and buying yen for the first time since 1998. Analysts, however, doubted whether the move would halt the yen\u2019s prolonged slide for long.<\/p>\n<p>BOJ POLICY CONUNDRUM<\/p>\n<p>The yen\u2019s recent sharp declines, which have pushed up households\u2019 living costs by boosting imported fuel and food prices, have been driven in part by widening divergence between the U.S. Federal Reserve\u2019s aggressive monetary tightening and the BOJ\u2019s ultra-loose monetary policy.<\/p>\n<p>The dollar added 0.54% to 144.175 yen on Monday, continuing its climb back toward Thursday\u2019s 24-year peak of 145.90. It tumbled to 140.31 that same day after Japanese authorities stepped into the market.<\/p>\n<p>In the meeting with Kuroda in Osaka, Masayoshi Matsumoto, head of the region\u2019s business lobby Kansai Economic Federation, praised Japan\u2019s decision to intervene in the market.<\/p>\n<p>\u201cIt was a meaningful move that showed Japan\u2019s determination it won\u2019t leave unattended sharp market volatility,\u201d he said.<\/p>\n<p>Yoshihisa Suzuki, an executive of trading house Itochu Corp, called on the BOJ to adopt a \u201cbalanced\u201d policy approach that takes into account not just the demerits of a weak yen but the potential risks of a sharp yen rise that hurts exports.<\/p>\n<p>\u201cPeople talk a lot about the demerits of a weak yen. But a strong yen is also painful,\u201d Suzuki said.<\/p>\n<p>While government officials\u2019 jawboning may keep markets nervous of the prospects of further intervention, stepping in repeatedly in the currency market and selling huge sums of dollars could be difficult due to the criticism Japan may face from its G7 counterparts.<\/p>\n<p>The U.S. Treasury Department said last week it \u201cunderstood\u201d Japan\u2019s intervention was aimed at reducing volatility, but stopped short of endorsing the move.<\/p>\n<p>A few months ago U.S. Treasury Secretary Janet Yellen said of the yen\u2019s depreciation that Washington remained convinced that currency intervention was warranted only in \u201crare and exceptional circumstances\u201d, and that the market should determine exchange rates for G7 countries.<\/p>\n<p>\u201cIt\u2019s unlikely Japan will continue intervening to defend a certain line, such as 145 yen to the dollar,\u201d former top Japanese currency diplomat Naoyuki Shinohara told Reuters.<\/p>\n<p>The yen is not alone in its downward spiral. Several other currencies, including the British pound, the euro and the Chinese yuan, have taken a hammering partly driven by the Federal Reserve\u2019s aggressive interest rate increases in recent months.<\/p>\n<p> (Reporting by Tetsushi Kajimoto in Tokyo and Leika Kihara in Osaka; Writing by Leika Kihara; Editing by Sam Holmes &#038; Shri Navaratnam)<\/p>\n<p><a href=\"https:\/\/www.oann.com\/uncategorized\/japan-warns-against-speculative\/attachment\/file-photo-japans-finance-minister-shunichi-suzuki-speaks-at-a\/\"><img decoding=\"async\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/09\/tagreuters.com2022binary_LYNXMPEI8P028-BASEIMAGE.jpg\" alt=\"tagreuters.com2022binary_LYNXMPEI8P028-BASEIMAGE\" \/><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>By Tetsushi Kajimoto and Leika Kihara TOKYO\/OSAKA (Reuters) -Japanese Finance Minister Shunichi Suzuki said authorities stood ready to respond to speculative currency moves, a fresh warning that comes days after<\/p>\n","protected":false},"author":66,"featured_media":1889215,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1657629","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_finder_url":"https:\/\/www.oann.com\/business\/japan-warns-against-speculative\/?utm_source=rss&utm_medium=rss&utm_campaign=japan-warns-against-speculative","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1657629","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/66"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1657629"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1657629\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1889215"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1657629"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1657629"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1657629"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}