The dollar fell against the yen on news of the meeting and was at 151.49 to the dollar. Earlier, the yen reached 151.97, weaker than the 151.94 level at which Japanese authorities intervened in October 2022 to buy the currency.
“We are now watching market movements with a high sense of urgency,” Suzuki told reporters. “If there are excessive movements, we will take decisive action and will not rule out any options.”
Christopher Wong, currency strategist at OCBC in Singapore, said markets were cautiously testing to see where the limit is for Tokyo.
“I think the risk of intervention is quite high because this is a new bull cycle,” he said, adding that if Tokyo doesn’t act, it would only encourage people to push dollar/yen much higher in the coming days. .
The yen continued to lose ground despite the Bank of Japan ending negative interest rates last week.
Bank of Japan President Kazuo Ueda said on Wednesday that the central bank will also keep an eye on currency movements and their impact on economic and price developments.
Tags: Japan decisive measures yen weakness officials call meeting
