TOKYO (Reuters) — Japan’s top currency diplomat Masato Kanda on Thursday called the yen’s recent moves “rapid” and said authorities would not rule out any steps to deal with excessive exchange-rate swings.
But Kanda declined to say whether the yen’s overnight falls were deemed excessive, and did not escalate his warning that “decisive action” would be taken against sharp yen declines.
“I don’t have any particular (dollar/yen) level in mind, but excessive volatility has a negative impact on the economy,” Kanda, who is vice finance minister for international affairs, told reporters.
“Recent moves are rapid,” he said. “We’d like to respond appropriately to excessive moves, without ruling out any options.”
Kanda’s comments came as the yen breached 153 per dollar, its lowest value since 1990, following Wednesday’s release of strong U.S. inflation data.
The dollar stood at 152.90 yen in Asia on Thursday.
“We are always prepared to respond to any situation,” Kanda said when asked whether authorities were preparing to intervene in the currency market to prop up the yen.
