Japan Prepared to Sell Yen if Climb Continues
Japanese Finance Minister Masajuro Shiokawa suggested the government is prepared to sell yen if the currency keeps climbing, saying authorities may intervene if the yen “swings wildly.”
Shiokawa was speaking after the yen rose as high as 118.88 to the dollar from 120.31 Thursday, and was recently trading at 119.07.
A stronger yen reduces exporters’ earnings when converted into yen.
The yen has risen 5.1% this month, making it the third-best performing major currency.
“We may need to intervene in the currency market if [the yen] swings abruptly,” Shiokawa told reporters after a Cabinet meeting.
He said finance chiefs from the Group of 7 top industrial nations were working to eliminate “speculative trading” from the currency market, which is hurting each nation.
Haruhiko Kuroda, the vice finance minister for international affairs, is “keeping in touch with his G-7 counterparts” he added.
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