TOKYO (Reuters) – Japan’s Finance Minister Shunichi Suzuki said on Thursday the government would not rule out any measures to address excessive exchange rate fluctuations.
“We didn’t just look at the stocks themselves, like 152 and 153 yen [per dollar], but we also looked at their context,” Suzuki told reporters.
Suzuki also said that excessive currency fluctuations are undesirable and that it is vital that currencies move in a solid manner, reflecting fundamentals.
The dollar was trading at 152. 90 yen in Asia on Thursday.
Earlier in the day, Masato Kanda, Japan’s most sensible currency diplomat, said the yen’s recent fall was immediate and that he would not rule out any action.
But Suzuki and Kanda declined to say whether the yen’s overnight fall was considered excessive, and Japan’s warning that it would take “decisive measures” in the face of a sharp decline in the yen was not repeated.
“I don’t have a specific point (dollar/yen) in mind, but excessive volatility has a negative effect on the economy,” Kanda, deputy finance minister for foreign affairs, told reporters.
“Recent progress is rapid,” he said. “We need to respond to exaggerated movements, without excluding any options. “
Asked if the government was preparing to interfere in the foreign exchange market to help the yen, Kanda replied: “We are in a position to react to any situation. “