Japan’s deputy chief cabinet secretary, Yoshihiko Isozaki, says that officials are watching the market moves carefully
In combating deflationary pressures, I’m sure they do favour a weaker currency but the latest drop in the yen is prompting some worries over higher costs for households and retailers – which are still gradually recovering from the pandemic.
Isozaki mentions the below when asked about the yen’s latest drop:
“Currency stability is extremely important, so we’ll continue to watch market moves carefully.”
He declined to comment on specific levels though, as is always the case.
I don’t see this as being a firm verbal intervention considering that if having to choose between a weaker or stronger currency, Japanese policymakers would prefer the former.
But with anything that moves too far, too fast, there are times when it does become undesirable though I don’t think we are quite there yet when it comes to the yen.