Japanese authorities repeat warnings of a strong response to the sharp yen decline

Japanese authorities warned of a sharp yen decline against the dollar once again. Finance Minister Shunichi Suzuki said there was a thorough and frequent inspection of exchange rates. According to Suzuki, the government will respond appropriately in case of sharp changes in the foreign exchange market.

Bank of Japan Governor Haruhiko Kuroda also reiterated his position that stability in the foreign exchange market is extremely important. Haruhiko Kuroda characterized the recent weakening of the yen as sharp and one-sided. During his speech at a parliamentary committee, Kuroda said that such a weakening of the yen makes it difficult for companies to draw up business plans and increases the uncertainty of the outlook. He also added that the weakening of the yen has a negative impact on the Japanese economy.

The comments came as the yen traded near a 32-year low against the dollar at 149 yen. The yen is now trading near the key psychological barrier of 150 yen.

Bank of Japan board member Seiji Adachi said that downside risks from the yen’s fall are growing, judging by global economic and financial conditions. He also added that due to the high, it makes sense to proceed cautiously to tighten monetary policy. Adachi warned that increased external headwinds could push Japan back into deflation.