Japan’s finance minister, Shunichi Suzuki, emphasized on Tuesday the importance of a collaborative approach with the Bank of Japan concerning foreign exchange issues to avoid any policy discord. Suzuki assured that vigilant measures will be taken to ensure currency stability that mirrors economic fundamentals.
Minister Suzuki downplayed the significance of targeting a specific yen-to-dollar exchange rate, despite speculation about Tokyo’s intervention when the yen weakened beyond 160 against the dollar last month. The yen has since made a robust recovery, currently trading at approximately 156.40.
Addressing a press conference after a cabinet meeting, Suzuki remarked that the government is keeping a close eye on interest rate trends. This statement was in response to the BOJ’s recent and unexpected decision to decrease its purchase volume of Japanese government bonds.
Suzuki also noted the necessity of mitigating undue volatility in the foreign exchange market as a general policy measure.