Select Language

Portfolio

Share your portfolio and performance in real time
Events & contests

Events and contests held by retail brokers around the world

Japan's Suzuki: Government ready to respond appropriately to excessive FX moves

World FX news

Home

Breaking news

Japan's Suzuki: Government ready to respond appropriately to excessive FX moves

New

2024.04.23 09:58

Japan's Suzuki: Government ready to respond appropriately to excessive FX moves

2024.04.23 09:58

Japanese Finance Minister Shunichi Suzuki offered some verbal intervention on Tuesday. Suzuki said that the Japanese government is ready to respond appropriately to excessive foreign exchange (FX) moves, adding that he will closely watch FX moves with a high sense of urgency.

Key quotes

"Won't comment on current FX moves."

"Government ready to respond appropriately to excessive FX moves."

"Closely watching FX moves with a high sense of urgency."

"Won't rule out any option, will deal appropriately with excessive FX moves."

"Closely communicated with the US and South Korea in FX when he was in Washington."

"Reconfirmed commitment that excessive FX moves are undesirable."

Market reaction

At the time of writing, USD/JPY is trading 0.06% lower on the day to trade at 154.75.

Japanese Yen FAQs

What key factors drive the Japanese Yen?

The Japanese Yen (JPY) is one of the world's most traded currencies. Its value is broadly determined by the performance of the Japanese economy, but more specifically by the Bank of Japan's policy, the differential between Japanese and US bond yields, or risk sentiment among traders, among other factors.

How do the decisions of the Bank of Japan impact the Japanese Yen?

One of the Bank of Japan's mandates is currency control, so its moves are key for the Yen. The BoJ has directly intervened in currency markets sometimes, generally to lower the value of the Yen, although it refrains from doing it often due to political concerns of its main trading partners. The current BoJ ultra-loose monetary policy, based on massive stimulus to the economy, has caused the Yen to depreciate against its main currency peers. This process has exacerbated more recently due to an increasing policy divergence between the Bank of Japan and other main central banks, which have opted to increase interest rates sharply to fight decades-high levels of inflation.

How does the differential between Japanese and US bond yields impact the Japanese Yen?

The BoJ's stance of sticking to ultra-loose monetary policy has led to a widening policy divergence with other central banks, particularly with the US Federal Reserve. This supports a widening of the differential between the 10-year US and Japanese bonds, which favors the US Dollar against the Japanese Yen.

How does broader risk sentiment impact the Japanese Yen?

The Japanese Yen is often seen as a safe-haven investment. This means that in times of market stress, investors are more likely to put their money in the Japanese currency due to its supposed reliability and stability. Turbulent times are likely to strengthen the Yen's value against other currencies seen as more risky to invest in.

Created

: 2024.04.23

Last updated

: 2024.04.23

NZD/USD Price Analysis: Bulls assert dominance, closes its best week of 2024
2024.05.18 07:06
USD/JPY Price Analysis: Extends gains but remains below 156.00
2024.05.18 05:44
USD/THB plunges and approaches the 100-day SMA, USD cushioned by Fed officials
2024.05.18 04:52
USD/NOK with light losses on quiet Friday, cautious Fed supports the USD
2024.05.18 03:05
Canadian Dollar sticks to the middle on tepid Friday
2024.05.18 02:33
Mexican Peso hits four-week high on hawkish Banxico remarks
2024.05.18 02:25

Writer

FXStreet

Financial media

FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.

Was this article helpful?

Yes

We hope you find this article useful. Any comments or suggestions will be greatly appreciated.
We are also looking for writers with extensive experience in forex and crypto to join us.

please contact us at [email protected].

Thank you for your feedback.

Send

Thank you for your feedback.

WTI holds below $82.00 on easing Middle East tensions, hawkish Fed

PBoC sets USD/CNY reference rate at 7.1059 vs 7.1043 previous

Most viewed

Disclaimer:

All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.

The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.

Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy

I agree