Japanese Finance Minister Shunichi Suzuki has expressed concern over the yen’s slide to a 38-year low against the US dollar and indicated that authorities are closely monitoring the situation with a sense of urgency. He stated that necessary actions would be taken to prevent any negative impact on the economy due to rapid and one-sided movements in the currency.
Suzuki emphasized that the government is deeply concerned about the implications of the yen’s depreciation on the economy and is analyzing the factors behind the currency’s decline. He assured that authorities will intervene if needed to address the situation and stabilize the currency.
The yen fell to 160.88 against the dollar on Wednesday, marking its lowest level since 1986. The drop in value is attributed to signals from the US Federal Reserve regarding interest rate policies and political uncertainties in Europe. Japan last intervened in the foreign exchange market in April, purchasing a significant amount of yen to support the currency.
The weakening of the yen has benefited Japanese exporters but has led to increased costs for imports, particularly food and fuel, impacting household budgets. The Bank of Japan has maintained low borrowing costs to stimulate economic growth, while the US Federal Reserve has raised interest rates to combat inflation.
Investors are closely monitoring the situation, and Japanese stocks have experienced a decline as traders await indications of potential intervention in the market. The Nikkei 225 index closed down by 0.8 percent on Thursday, reflecting the uncertainty surrounding the yen’s value and the impact on Japan’s economy.