(Bloomberg) -- Japan’s top currency official Masato Kanda flagged a reaffirmation of existing currency commitments by the finance ministers of Group of Seven nations in Washington, as concern continues to build in Tokyo over the ongoing weakness in the yen. Most Read from Bloomberg Dubai Grinds to Standstill as Cloud Seeding Worsens Flooding Red Lobster Considers Bankruptcy to Deal With Leases and Labor Costs Tesla Asks Investors to Approve Musk’s $56 Billion Pay Again Elon Wants His Money Back Bankers Hit With Millions in Breakup Fees for Ditching New Jobs “Reflecting Japan’s stance, the G-7 has reaffirmed its commitments to past G-7 policy responses, including exchange rates,” Kanda said. “The key commitment is the recognition that excessive volatility and disorderly movements in exchange rates can have adverse implications for economic and financial stability.” The G-7 statement released Wednesday in Washington contained a line reaffirming the members’ commitments outlined in May 2017. The reference to the adverse effects of excessive movements essentially leaves the door open to members to intervene in markets under certain circumstances. The yen briefly strengthened to 153.96 against the dollar after Kanda’s comments, before giving up gains to trade around 154.26 early afternoon in Tokyo. Kanda spoke to reporters in Washington where he is attending meetings of finance chiefs and central bank governors of the G-7 and Group of 20 nations. Earlier in the day US Treasury Secretary Janet Yellen took note of worries between her Japanese and South Korean counterparts over sharp declines in their exchange rates, in a joint statement following a debut trilateral finance meeting. Read more: Yellen Acknowledges Japan, S. Korea Worries Over Yen, Won The yen has remained under pressure as market participants expect the US-Japan interest rate gap will stay wide for long. The resilient US economy has pushed back prospects of rate cuts by the Federal Reserve while the Bank of Japan has signaled it won’t raise rates fast. Authorities in Tokyo spent about $60 billion in 2022 to prop up the yen on three occasions, each time insisting that they were not protecting any specific currency level. --With assistance from James Mayger. Most Read from Bloomberg Businessweek Aging Copper Mines Are Turning Into Money Pits Despite Demand For Multinationals, Africa’s Allure Is Fading Premiums Are Rising, and Insurers Say Lawsuits Are to Blame A Very Bad Week for Tesla, Its Employees and Even Elon Musk Amazon Expands Sales of Its Cashierless Tech, While Scaling Back Itself ©2024 Bloomberg L.P.
Japan’s Top Currency Official Says G-7 Reaffirms Currency Commitments
You are reading a free article with opinions that may differ from the recommendation given by Kalkine in its paid research reports. Become a Kalkine member today to get access to our research reports, in-depth technical and fundamental research. Learn more
Start Your Free Trial Now!Download Free Report – Explore 3 Stock Ideas & Industry Insights
Unlock 3 stock ideas and key industry insights in our free report. This information is general in nature and does not consider your personal objectives, financial situation, or needs. It is not financial advice.
All investments involve risk—consider independent advice before making any investment decisions.
View 3 Research ReportsThis information, including any data, is sourced from Unicorn Data Services SAS, trading as EOD Historical Data (“EODHD”) on ‘as is’ basis, using their API. The information and data provided on this page, as well as via the API, are not guaranteed to be real-time or accurate. In some cases, the data may include analyst ratings or recommendations sourced through the EODHD API, which are intended solely for general informational purposes.
This information does not consider your personal objectives, financial situation, or needs. Kalkine does not assume any responsibility for any trading losses you might incur as a result of using this information, data, or any analyst rating or recommendation provided. Kalkine will not accept any liability for any loss or damage resulting from reliance on the information, including but not limited to data, quotes, charts, analyst ratings, recommendations, and buy/sell signals sourced via the API.
Please be fully informed about the risks and costs associated with trading in the financial markets, as it is one of the riskiest forms of investment. Kalkine does not provide any warranties regarding the information on this page, including, without limitation, warranties of merchantability or fitness for a particular purpose or use.
Please wait processing your request...