(Bloomberg) — Japan’s Finance Minister Katsunobu Kato said he is raising the level of urgency for monitoring currency moves, after the yen hit an almost three-month low against the dollar.
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“We are seeing one-sided, rapid moves” in the forex markets, Kato told reporters after attending Group of 20 finance chiefs and central bankers meetings in Washington Wednesday. “We will closely monitor the foreign exchange market with a stronger sense of urgency, including watching for speculative trading.”
Japan’s currency fell to 153.19 per dollar earlier Wednesday, the weakest level since July 31. While the yen is still far from the 38-year low it reached in early July when it fell close to 162, currency’s recent sudden slide is reigniting investor concerns over currency intervention from the Ministry of Finance.
Many BOJ watchers are looking at the yen closely, as it could be a key factor in bringing forward the timing of the central bank’s next rate hike. Most economists surveyed by Bloomberg expect the next rate move to come in December or January.
Economists largely expect an intervention to happen if the yen hits 160 to the dollar. The currency gained following Kato’s remarks and was trading at around 152.40 Thursday morning in Tokyo.
Japan is heading into a general election Sunday and the US Presidential election looms early next month. Analysts see that authorities may be cautious about taking concrete action in the currency markets before observing the results of major political events.
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