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Thursday, April 7, 2016, 15:18

Japan vows action against one-sided currency moves

By Xinhua

Japan vows action against one-sided currency moves
A bank teller counts 10,000 yen banknotes in Tokyo on Sept 22, 2010. (AFP PHOTO / Yoshikazu TSUNO)

TOKYO - The Japanese government said on Thursday that it would take action to rebalance one-sided currency movements if deemed necessary as the US dollar tumbled to a fresh 17-month low versus the Japanese yen.

Japan's top government spokesperson said that one-sided currency movements had been seen in the market and could lead to excess volatility and impact both financial and economic stability.

"One-sided movements are seen in the currency market," Chief Cabinet Secretary Yoshihide Suga told a press briefing, adding that the Group of 20 major economies had agreed that "excess volatility and disorderly movements in exchange rates can have adverse implications for economic and financial stability."

Suga's remarks came as the US dollar dropped to the lower 109 yen zone in Tokyo on Thursday morning, hitting levels last seen in October 2014, on the heels of the yen also rising to 17-month highs versus its US counterpart in trading overnight in New York.

At noon, the dollar was quoted at between 109.25-27 yen, compared with 109.74-84 yen in New York and 110.40-42 yen in Tokyo in late trade on Wednesday.

The euro, meanwhile, was changing hands at between 1.1400-1404 dollars and 124.55-56 yen against 1.1394-1404 dollars and 125.11-21 yen in New York and 1.1356-1358 dollars and 125.37-41 yen in Tokyo late Wednesday afternoon.

The Japanese government suggested that the US Federal Reserve's recent dovish stanch on the pace of future rate hikes, reinforced by the release of its latest policy minutes, saw the dollar sold for yen, deemed a safe haven.

Economists added that Abe's comments himself, might have contributed to the yen's recent appreciation, which batters the already pressured export sector here and increases market volatility, following remarks made to the Wall Street Journal that countries should refrain from arbitrary intervening into currency markets.

Suga said that the situation would be "monitored closely" and action taken "if necessary."

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