Kanda announces Japan is on “standby” as Yen plunges past 151 to Dollar

Amid the resumed selloff of Yen, which broke 151 level against Dollar overnight, Japan’s top currency official, Masato Kanda, has issued a stern verbal warning. The Vice Finance Minister for International Affairs emphasized that Japan remains vigilant and “on standby” to mitigate the excessive volatility observed in the currency markets.

However, Kanda refrained from divulging specific details on potential interventions. “But I can’t say what we’ll do, and when — we’ll make judgments overall, and we’re making judgments in a state of urgency,” he added.

Kanda voiced significant concern over the rapid and one-sided shifts in currency values, stressing the importance of calibrated responses against overblown foreign exchange movements. He emphasized that fundamental economic indicators don’t justify such abrupt currency shifts, hinting at other factors at play. “Speculative trading seems to be the biggest factor behind recent currency moves,” Kanda observed.

“The yen has weakened close to 25 yen against the dollar from the start of the year, and it’s also moved a few yen in a short amount of time,” he noted, highlighting the dramatic shift in the currency’s value.