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Japan warns of appropriate action any time against rapid yen moves

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I also "stand ready to take appropriate steps against volatile yen moves at any time".

I also think "that currency moves should be stable, reflecting economic fundamentals."

I also "not rule out the possibility of a rate hike in July depending on incoming economic data."

I can now become a Chief Finance Minister of Japan, nice.

And after all my remarks above the dollar remained in the upper 159 yen zone. So nice job to me.

2 ( +14 / -12 )

Perhaps someone more enlightened about monetary policy than me can explain - but don't these interventions erode confidence in the yen over the long term?

Don't get me wrong, I realize something has to be done even if it's just to postpone its descent over the short term while they wait on external forces to restore the exchange rate. But "speculators" aren't going to be exactly encouraged by these interventions right?

9 ( +10 / -1 )

Japan warns of appropriate action any time against rapid yen moves

Last time when i heard such warning, it back fired and did not much time to reach and cross over 150yen/$

Wonder where does this warning take the Yen to

9 ( +10 / -1 )

Its the 4th time they say the empty threats. The markets are laughing at them. Onwards and upwards, bye bye Yen-san.

-13 ( +10 / -23 )

fluctuations are not based on fundamentals

On the contrary, it is perfectly in line with fundamentals. Ten years of Abenomics, which merely kicked the can down the road, have destroyed the JPY, making the ordinary Japanese much poorer.

4 ( +13 / -9 )

This is the result of abenomics and twelve years of money printing. It’s not helping and has to stop or we could be looking at ¥170 to the dollar..

1 ( +10 / -9 )

Quite frankly it’s embarrassing when you look at Japan these days. All they can do is open the floodgates to a bunch of low level tourists.

-8 ( +9 / -17 )

@commodoreFlag I am definitely not a currency or financial exper, but at this point, I see the interventions in the propping up the yen are definitely eroding confidence in the Yen and the future of Japanese and businesses,. but that’s just my take.

I think it’s a part of a larger problem whereas Japanese companies seem to be failing, and those Japanese companies are investing in American companies to make a profit in USD. I feel like these Japanese companies should be investing in their own country here in Japan not in the US. I feel like that would make more sense in the long run, then investing outside of Japan. The GDP has to increase that is the way I think out of the mess.

For myself, as far as my trust in the erosion of the Japanese yen. The last time the Yen went over 147 I did a transfer for $200,000 USD. I was thinking about doing it again if it hit 160 but at this point like I said earlier, if manipulating the currency makes me wanna just leave my money cash in the US.

I think that they should just let the economy go the way it’s going even if the Yen depreciated quite a bit more, let it be. I think if both of those things happen, then you’ll start to see real change in Japanese business and Japanese government. But like I said, I’m definitely no expert. I’m just trying to get by like everyone else. Sorry for writing in novel as a comment! lol

6 ( +8 / -2 )

Japan is now as cheap as Thailand for certain items.

https://www.mylifeelsewhere.com/cost-of-living/japan/thailand

-9 ( +6 / -15 )

In 1970 it was JY360=USD1.00.

In 1985 it was JY245 = USD1.00.

In 1995 it was JY100 =USD1.00.

In late 2011/early 2012 it was JY70=USD1.00

Lesson to be learned; spending time buying Yen when it's cheap is a far more intelligent activity than posting how the "yen if worthless" on an internet site.

4 ( +13 / -9 )

Japan relies heavily on overseas energy and raw materials, and a weak yen inflates import costs.

It's a double edged sword! How about the growing export rate currently. I understand the Yen being this weak is an issue but its not all doom and gloom as exports have increased as a result.

0 ( +3 / -3 )

"....expressed concern about the negative impact of rapid yen fluctuations.

It's not "fluctuations," you dummy. "Fluctuation" means sudden ups and downs. There're been scant "ups." The problem is sustained weakness, a different trend all together.

This is the result of abenomics and twelve years of money printing.

No, it's actually the result of the US Fed and US economic trends. The Biden economy is so strong that currency traders now believe that the Fed is starting to feel that lower interest rates are no longer needed to give a boost, as the "boosting" has largely already been achieved.

-6 ( +1 / -7 )

Based on many experts the yen will be at around 230 by the end of the century , Good for Japan any way you look at it.

All what needs to happen now is for the GREEDY employers to raise wages to match inflation, not the other way around.

-2 ( +2 / -4 )

When the USD will value 200¥, I am extremely curious about what so called experts are going to babble again about.

Instead of finding the root cause of the Yen devalue, they are just patching it with temporary useless measurements.

-3 ( +6 / -9 )

How many times, in recent years, i have heard this?? Different versions. So typical/sad state of affairs here, its all talk, end of the day, non thing will happen/change. Japanese, must all collective do something, about local politics.

1 ( +5 / -4 )

@Design Monkey a wise man would do what you did before instead of talk about how much you have. The bigger the risk the bigger the gain but as they say talk is just jibberish!

For myself, as far as my trust in the erosion of the Japanese yen. The last time the Yen went over 147 I did a transfer for $200,000 USD. I was thinking about doing it again if it hit 160 but at this point like I said earlier, if manipulating the currency makes me wanna just leave my money cash in the US.

3 ( +3 / -0 )

160 is the max trigger, sudden move of 3 yen drop in a day another trigger. What do they do ? simple buy back yen with enormous dollar reserves.

As usual, just patch solutions, the real solution will cause Kishida and LDP next election and the next, so it won't happen.

0 ( +5 / -5 )

Based on many experts the yen will be at around 230 by the end of the century , Good for Japan any way you look at it.

Why would it be good for Japan when foreigners can come in to buy up all assets (such as properties) cheaply, and it's more expansive to import foreign goods and material?

-3 ( +2 / -5 )

In 1970 it was JY360=USD1.00.

In 1985 it was JY245 = USD1.00.

In 1995 it was JY100 =USD1.00.

In late 2011/early 2012 it was JY70=USD1.00

@Fighto!, Before the 1971 “Nixon Shock” and for two years after the 1985 Plaza Accord, agreements were in place among nations to actively manipulate exchange rates, including the yen.

Currently, such agreements don’t appear to exist, so comparing historical exchange rates from those times with today is absolutely absurd because the fundamentals wildly differ.

3 ( +6 / -3 )

This is the result of abenomics and twelve years of money printing.

No, it's actually the result of the US Fed and US economic trends. The Biden economy is so strong that currency traders now believe that the Fed is starting to feel that lower interest rates are no longer needed to give a boost, as the "boosting" has largely already been achieved.

I don’t think so. The JPY has depreciated against all major currencies not only the USD. For ex if you look at the EUR USD it has been rather stable showing it is more a JPY depreciation than a USD appreciation ( I know it all depends the period you look at but at least it is true if you look at the last leg of the depreciation over the past year).

0 ( +2 / -2 )

Based on many experts the yen will be at around 230 by the end of the century

Which experts? Links?

4 ( +4 / -0 )

Umm it's all speculation. And based on nothing tangible at all. Just belief. Remember that, Japan.

2 ( +2 / -0 )

Japan stands ready to take appropriate steps against volatile yen moves at "any time," 

They’ve been saying that since the yen was hitting the 145¥ mark!!! They’ll never do anything to stop the yen from weakening further!

Last week The USA has put yen and Japan on the watchlist of countries who are currency manipulators and this might finally make the Japanese authorities take some actions to stop the yen becoming any worse than the 160 mark!

-3 ( +3 / -6 )

The yen should be 180 to the dollar, that's a fact.

-10 ( +3 / -13 )

I thought Japan liked low yen exchange rate to double foreign tourists to 60 million/year...

Oh, Japan is now cheaper to vacation than Thailand and Vietnam, Let's go!

-10 ( +4 / -14 )

Agree with design monkey, some pan is required for Japan to get with the times.

Recently my friends daughter was told she can’t come to school unless she dies her hair black…it’s 2024 for lords sake. Get your priorities right Japan.

3 ( +3 / -0 )

The yen should be 180 to the dollar, that's a fact.

Then short it. No point posting about it.

3 ( +3 / -0 )

Well, because Japan is one of the biggest holders of foreign currency, they could bankrupt USD or RMB dependent countries on a whim…

-4 ( +0 / -4 )

Please intervene. The last time went from 150 to 160 now. Another one should take it to 170. With less influence, lower quality, and a work force at 1980’s salaries, what do you expect.

-4 ( +2 / -6 )

Long trend shows yen strength has peaked with Japan active real workforce (2 to 60 year old). Checkyourself.

Guess now what will be the next 50 years trend?

In comparison, population of the USA has been growing forever, giving its strength to the dollar.

Power of money is its people strength for a country with no resources.

2 ( +3 / -1 )

Natural resources.

2 ( +2 / -0 )

all fiat currency is making you poorer.

1 ( +2 / -1 )

@rakuraku

The JPY has depreciated against all major currencies not only the USD.

That's mostly because the major economies also hiked their interest rates after covid to choke off their higher levels of inflation, while the BOJ stayed the course and today is stating an intention to stick with accommodative policy.

So, no, the weak yen is not due to "Abenomics" (when the yen was a lot stronger) or any inherent weakness in the Japanese economy, it's due to the large interest rate differentials.

2 ( +4 / -2 )

In late 2011/early 2012 it was JY70=USD1.00

Yep exactly. I did well from that year however it wasn't good for export led Japan having such a strong yen. That period of relative strength was a good 3 years too and wasn't healthy for the overall economy.

People who understand, realize the longer term cyclical nature of this stuff. The plebs bleating from the sidelines about the price of their daily sausage, mean nothing in the big picture.

-1 ( +0 / -1 )

Based on many experts the yen will be at around 230 by the end of the century , Good for Japan any way you look at it.

Anybody who claims to predict an exchange rate 76 years in the future is a crackpot, not an expert. In this environment, no responsible economist would claim to predict the yen rate even 6 years from now.

4 ( +4 / -0 )

A currency value reflects the situation in economy in general. So in fact that will soon balance out, because for example, when others buy Japanese products currently very cheap, they don't produce them and offer jobs on their own side, and then their economy starts to shrink and their currency value follows, which brings back higher Yen rates again, and so on. It's like shifted sine curves, if you like. The rest of influence stems from a few bigger Forex traders. They bring the daily volatility and speculation problems, but not the internationally outbalancing economies.

0 ( +0 / -0 )

If you want to see the state Japan go visit Bic Camera. Ten years ago it was selling Hitachi, Toshiba. Then LG and Samsung. Today it's selling funny names like Twinbird or Haier. And when it was an electronic store now it's selling sake, snacks and toothpaste. The bottom line: the yen is weak because there is no more reason why it should be strong.

-2 ( +2 / -4 )

Nero, agree. The innovation has been sucked out of the room.

-3 ( +1 / -4 )

Why would it be good for Japan when foreigners can come in to buy up all assets (such as properties) cheaply, and it's more expansive to import foreign goods and material?

.

The tanking yen is such a massive lure for me as I always wanted to find a single floor dwelling with a sea view for less than 10 million yen and now I am seriously looking at properties here.

-2 ( +0 / -2 )

20 to 60 years old of course.

0 ( +0 / -0 )

There are millions of abandoned homes as well as millions of homes for sale in Japan.

The long term outlook for any property outside of central Tokyo is down.

There isn’t a need to buy an overpriced condo overlooking Tokyo bay for me.

0 ( +0 / -0 )

There are millions of abandoned homes as well as millions of homes for sale in Japan.

The long term outlook for any property outside of central Tokyo is down.

There isn’t a need to buy an overpriced condo overlooking Tokyo bay for me.

Great! Live in the country

0 ( +0 / -0 )

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