STRESA, Italy –
Japan stands ready to take appropriate market action “at any time” to counter excessive moves in the yen, its top currency diplomat Masato Kanda said on Friday, as he issued a new warning about the likelihood of renewed exchange rate intervention.
Kanda also said he was in regular and close contact with foreign colleagues, especially in the US, on issues such as financial markets.
“Under a flexible exchange rate regime, we do not need to intervene if currency movements are stable. But if there are excessively volatile movements that have a negative impact on the economy, we must take action, and that would be justified,” Kanda told reporters.
