Japan PM Kishida says ready to act again to support yen

Japanese Prime Minister Fumio Kishida looks around before speaking ahead of U.S. President Joe Biden at the Global Fund’s Seventh Replenishment Conference in New York, U.S., September 21, 2022. REUTERS/Leah Millis

NEW YORK – Japanese Prime Minister Fumio Kishida said on Thursday excessive movement in the yen due to speculation cannot be overlooked and that his government would act “with a high level of vigilance” and intervene to support the currency again if necessary.

“Should there be any excessive volatility we will take action,” he said in a speech at the New York Stock Exchange, hours after Japan bought yen to prop up the currency for the first time since 1998.

The remarks underscored Tokyo’s resolve to continue battling sharp declines in the yen, which have added pain to households and retailers by inflating already rising prices of raw material and fuel imports. It is rare for Japan’s prime minister to make explicit comments on currency moves.

Japan intervened in the foreign exchange market on Thursday to buy yen for the first time since 1998, in an attempt to shore up the battered currency after the Bank of Japan (BOJ) stuck with ultra-low interest rates.

The move, which occurred during late Asian hours, saw the dollar fall more than 2 percent to about 140.3 yen. There were no subsequent signs of further intervention or help from other central banks. The dollar stood around 142.36 yen at 2316 GMT.

Friday is a public holiday in Japan, though the country’s top currency diplomat, Masato Kanda, told reporters on Thursday that would not affect Tokyo’s decision on whether and when to intervene again.