Japan PM Kishida warns against sharp, one-sided yen falls

By Leika Kihara

TOKYO, Oct 7 (Reuters) -

Japanese Prime Minister Fumio Kishida said on Friday recent sharp, one-sided yen declines were undesirable, repeating the government's warning to investors against pushing down the currency too much.

"The weak yen has various positive and negative effects on the economy. But sharp, one-sided yen declines, such as those seen recently, are undesirable," Kishida told parliament.

Japan's dollar-selling, yen-buying intervention conducted last month reflected the government's view that it cannot turn a blind eye to "repeated, excessive volatility" driven by speculative trading, he said.

The comments came after the yen JPY=EBS touched 145.04 per dollar on Friday, close to its 24-year low of 145.90 hit last month which prompted Japanese authorities to intervene.

The yen has weakened against the dollar as investors focused on the widening policy diverence between the Bank of Japan, which has pledged to keep interest rates ultra-low, and the U.S. Federal Reserve, which has hiked interest rates aggressively to combat soaring inflation.
Reporting by Leika Kihara; Editing by Simon Cameron-Moore

Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.

All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.

Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.

We are using cookies to give you the best experience on our website. Read more or change your cookie settings.

Risk Warning: Your capital is at risk. Leveraged products may not be suitable for everyone. Please consider our Risk Disclosure.