There is no clear sign of intervention by Japan so far, as USD/JPY is trading in tight range close to 32-yr high. Finance Minister Shunichi Suzuki just said, “if we see excessive volatility caused by speculative moves, we will take decisive action. There is no change in this view at all.”
Separately, BoJ Governor Haruhiko Kuroda said in a parliamentary session, Japan’s economy is in the midst of recovery from COVID-19. Higher commodity prices, on the back of the situation in Ukraine, have been leading to an outflow of income from Japan to overseas, adding downward pressure on the economy.”
“For now, we think it appropriate to continue with monetary easing because it’s necessary to support the economy and achieve our inflation target in a sustainable and stable fashion accompanied by wage growth,” he added.
