Japan Officials Mum on Possible Yen Intervention; Movement in the foreign market signals action

The yen traded at a high of ¥156 against the U.S. dollar in Tokyo on Tuesday, not much change from the previous day’s close. While some movement in overseas markets on Monday indicated possible interventions by the Japanese government and the Bank of Japan, Japanese officials made no specific comment.

“I will refrain from commenting on foreign exchange market trends or currency intervention, including whether the government has taken such action,” Prime Minister Fumio Kishida said on Tuesday.

“This is what the government is saying,” he told reporters at the prime minister’s office.

Masato Kanda, deputy finance minister for international affairs, also said he had no comment on whether interventions took place. “[We are monitoring the market] around the clock, so it doesn’t matter if it’s in London or New York,” he told reporters.

“Excessive market fluctuations caused by speculative movements will have a negative impact on people’s lives,” Kanda added.

Yen selling and buying accelerated on Monday, with the yen temporarily falling to ¥160 against the dollar. The price then appreciated rapidly, at one point reaching the level of ¥154 against the dollar.

Many in the market believe that the Japanese government and the BOJ may have intervened to buy the yen and sell the dollar.