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Trump Victory Won't Call for Yen Action, Former Currency Chief Says

  • Ex-MOF currency chief says Trump win would bring haven buying
  • But volatility would be short-term, unlikely to prompt action
Pedestrians walk past an electronic stock board outside a securities firm in Tokyo, Japan, on Wednesday, Sept. 14, 2016. The Topix index fell for a sixth day at the close of trading in Tokyo as volatility returned to markets ahead of meetings by policy makers in Japan and the U.S. next week amid investor concern central banks around the globe may be reassessing the benefits of existing stimulus measures.
Photographer: Tomohiro Ohsumi/Bloomberg

A victory by Donald Trump in the U.S presidential election is unlikely to trigger moves in the yen that would warrant action by Japanese authorities, said Hiroshi Watanabe, president of the Institute for International Monetary Affairs and a former currency chief at the Ministry of Finance.

A Trump win would likely prompt investors to move to assets perceived as offering safety, he said, causing stocks to drop. However, any volatility in the yen would be short-term, so neither the government nor the Bank of Japan would be forced to act.