- Finance minister says rapid gyrations aren’t good for economy
- Yen at a level where jawboning ‘likely’: Mizuho Securities
The yen fell for a second day against the dollar after Japanese Finance Minister Taro Aso said Tuesday stability in foreign-exchange markets is important.
Japan’s currency weakened against its 16 major peers after Aso told reporters in Tokyo that rapid gyrations in exchange rates aren’t good for the economy. The yen jumped on Friday after the Bank of Japan disappointed investors by leaving its bond-buying and negative interest rate policies unchanged, extending its run as the best performing developed-market currency this year.
The yen fell 0.2 percent to 102.63 per dollar as of 11:56 a.m. in Tokyo, adding to Monday’s 0.3 percent decline. It surged 3.2 percent Friday, the most since June 24, when the result of the U.K.’s vote to leave the European Union was announced, and is up 17 percent this year.
“The yen is being sold on Aso’s comments,” said Kenji Yoshii, a Tokyo-based currency strategist at Mizuho Securities Co. “Japan’s exporters need an exchange rate in or around the 103s to be profitable, so Japanese authorities would probably like the yen a little weaker than the 102s. We’re at a level where verbal intervention is quite likely.”
Panasonic Corp. last week partly blamed the strong yen for a fall in quarterly profit. Toyota Motor Corp. is among companies that have warned that the exchange rate is a headwind for earnings.