Japan Kanda says closely watching FX moves with high sense of urgency

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
  • 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’.

This article was written by Eamonn Sheridan at www.forexlive.com. Source