Japan's Kanda Says Ready to Intervene 24 Hours A Day if Needed

Japan's Finance Minister Shunichi Suzuki has reaffirmed the country's commitment to intervening in the currency market to stabilize the yen, saying they are ready to act 24 hours a day if necessary. The statement follows recent volatile moves in the yen, which has weakened to its lowest level against the dollar in 24 years. Kanda's comments come as the Bank of Japan maintains its ultra-loose monetary policy while other major central banks are raising interest rates to combat inflation. This divergence in policy has widened the interest rate differential between Japan and other countries, making the yen less attractive to investors and contributing to its decline. The Japanese government has intervened in the currency market several times in recent months, selling dollars and buying yen in an attempt to support the currency. While these interventions have had some impact, the yen's weakness persists, raising concerns about its impact on the Japanese economy. The government's resolve to defend the yen is clear, but the effectiveness of its interventions remains uncertain. With the Bank of Japan unlikely to change its monetary policy stance anytime soon, the yen's future trajectory will likely depend on factors such as global interest rate movements and the progress of the US Federal Reserve's tightening cycle.

Summary

"Japan's Finance Minister has stressed their readiness to intervene in the currency market to stabilize the yen, but the effectiveness of these actions remains uncertain. The yen's future trajectory will likely be influenced by global interest rate movements and the US Federal Reserve's tightening policy."