Tokyo June 13 2022: Japan’s top government spokesperson on Monday issued a fresh warning to markets that Tokyo was concerned about sharp yen falls and ready to “respond appropriately” if needed.
The remark, which echoed a joint statement between the government and the central bank released on Friday, came after the Japanese currency fell to a fresh 20-year low against the dollar at 135.00 yen as red-hot U.S. inflation data drove up Treasury yields.
Japan’s top government spokesperson on Monday issued a fresh warning to markets that Tokyo was concerned about sharp yen falls and ready to “respond appropriately” if needed.
The remark, which echoed a joint statement between the government and the central bank released on Friday, came after the Japanese currency fell to a fresh 20-year low against the dollar at 135.00 yen as red-hot U.S. inflation data drove up Treasury yields.
The yen briefly rallied late on Friday when Japan’s government and central bank said they were concerned by its recent sharp falls, a rare joint statement seen as the strongest warning to date that Tokyo could intervene to support the currency.
But the currency lost momentum as the dollar strengthened after Friday’s U.S. inflation data reinforced market expectations the Federal Reserve will raise interest rates aggressively to combat surging inflation.
