Japan Finance Minister Jun Azumi said moves in the yen since yesterday were speculative and the government is ready to act against unacceptable changes in the currency’s value.
“The yen’s move from yesterday has been clearly speculative, and we won’t accept such moves,” Azumi told reporters in Tokyo after the yen gained 0.7 percent yesterday and as the U.S. Federal Reserve prepared for a policy meeting. “We will definitely take bold actions if needed.”
His comments failed to weaken the currency, which traded at 77.83 per dollar at 5:25 p.m. in Tokyo.
A strengthening currency adds to challenges for a Japanese economy struggling to maintain momentum as incentives for car purchases fade and weakness in the global economy limits exports. The yen has climbed more than 7 percent against the dollar since mid-March and any further monetary loosening in the U.S. has the potential to fuel further gains.
Azumi was asked for his view on the yen trading at stronger than 78 per dollar and the pending decision of the Federal Open Market Committee.
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