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