Suzuki of Japan ready to take 'all measures' on FX
"We are closely watching the latest events," said Finance Minister Shunichi Suzuki on Tuesday in Tokyo before his departure for Washington to attend the annual International Monetary Fund events and meetings of finance ministers from the Group of Seven and Group of Twenty nations. "We stand ready to take any necessary actions to address the situation if required."
The finance minister's comments came after the yen reached a new 34-year low of 154.45 against the US dollar, following stronger-than-anticipated US retail sales data. With Suzuki refraining from his maximum policy threat, the yen weakened further, reaching its lowest level for the day.
Japanese currency officials find themselves in a difficult position as they travel to the US for meetings with their counterparts. International accords mandate that nations allow markets to set exchange rates, though they do provide leeway for intervention if there are abnormal movements in the market. Forceful verbal interventions or direct market operations would thrust Japan's actions into the international spotlight.
Suzuki stated that he would abstain from commenting on whether the movements in the market have been rapid or excessive.
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