Japan's finance minister says authorities are closely monitoring money markets after yen plunges

Japan's finance minister says Japanese authorities are closely monitoring financial markets after the yen's sharp fall, revealing that the yen has weakened to a 3-month low, but caution must be exercised during the Japanese and US elections.

October 24, 2567, Bloomberg News reported that Mr. Kasunobu Kato, Minister of Finance of Japan Expressing concerns about the recent rapid depreciation of the yen, stating that The government will intensify its monitoring of currency movements after the yen hit a nearly three-month low against the US dollar.

It fell to 153.19 yen per US dollar, its weakest level since July 31.

Speaking to reporters at a meeting of G20 finance ministers and central bank officials in Washington on Wednesday (Oct 23), Kato said the market was facing rapid and unilateral movements in currencies and said Japanese authorities would be closely monitoring the foreign exchange market, particularly any signs of speculative trading.

The yen fell to 153.19 yen against the US dollar early Wednesday (Oct 23), its lowest level since July 31.

But after Kato's comments, the yen rose slightly, reaching 152.40 yen in Tokyo trading this morning (Oct 24).

Although the yen is still far from its 38-year low of 162 yen hit in early July, its recent sharp decline has raised concerns about possible intervention from the Treasury.

Many Bank of Japan (BOJ) watchers are keeping a close eye on the yen as its movement could affect the timing of the BOJ's next interest rate hike, with a majority of economists in a Bloomberg poll expecting the BOJ to raise rates again in December or January.

Economists believe Japan could intervene in currency markets if the yen falls to 160 yen against the US dollar.

With Japan's general election on Oct. 27 and the US presidential election on Nov. 4, analysts say Japanese authorities may be cautious about intervening in currency markets until these major political events have passed.

refer : bloomberg.com

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