Japanese politicians warn against selling the yen and bonds

Japanese politicians continue to warn investors against selling Japanese currency as the dollar rose to a 24-year high against the yen on Wednesday, sparking rumors of a second сurrency intervention wave.

The U.S. currency rose to a record 146,35 yen, which was last seen in August 1998 during the Asian financial crisis. Such a figure was even higher than the level that forced Japanese authorities to roll out their support program last month.

"We are focused on exchange rate movements and ready to take appropriate measures in case of excessive fluctuations", Hirokazu Matsuno told reporters.

This comment was given immediately after Jiji Press quoted Finance Minister Shunichi Suzuki as saying that the country's position has not changed in any way and therefore it will take the necessary steps in a foreign exchange market if necessary. "What was important was the speed of currency movements", not even levels, the Jiji Press quoted Suzuki statements.

Neither Matsuno nor Suzuki used any harsh language in describing Wednesday's yen movement other than "excessive", "one-sided" or "speculative", suggesting that currency intervention may not be imminent.

Japanese authorities sold dollars and bought the yen recently, for the first time in 24 years in a market intervention, spending 2,8 trillion yen ($19,2 billion) to slow a rapid yen decline that was seen as a threat to their economy.

Market participants were watching closely to see how Suzuki would explain Japan's position on the intervention and whether the country would get support from the U.S. and other countries.

While Japanese officials say they do not necessarily need U.S. approval to act on currency markets, they have repeatedly stressed the importance of reaching a U.S. understanding that is seen as giving them legitimacy.

Investors believe that Japan's actions are far less effective than coordinated interventions with other countries.