There was some unusual volatility in USD/JPY overnight at it approached 1998 high at 147.68. The pair was knocked down but there was no sustained selling. Japan Ministry of Finance declined to confirm whether that was caused by intervention.
Meanwhile, Finance Minister Shunichi Suzuki just reiterated that government’s readiness to take “appropriate action” against “excessive volatility” in the markets. He said, “we cannot tolerate excessive volatility driven by speculative moves. We’re watching market developments with a strong sense of urgency.”
Separately, BoJ Governor Haruhiko Kuroda maintained that “raising rates now is inappropriate in light of Japan’s economic, price conditions.” He added that “pace of Japan’s economic recovery still slow so BoJ must continue supporting economy.”
