Sengoku Says Japan Finance Ministry May View 82 Yen-Dollar As Defense Line
Japan’s top government spokesman said the Ministry of Finance “seems to think” 82 yen per dollar needs to be defended after intervening in the foreign- exchange market for the first time since 2004.
The yen tumbled 1.7 percent to 84.77 per dollar as of 12:14 p.m. in Tokyo, after reaching a 15-year high of 82.88 earlier today. Finance Minister Yoshihiko Noda confirmed that Japan sold its currency, saying foreign exchange movements “could have a negative effect on the stability of economy and financial markets.”
Asked if the 82 yen level is being defended, Chief Cabinet Secretary Yoshito Sengoku said at a press conference in Tokyo “that’s what the finance ministry seems to think.”
Japan is seeking to gain the understanding of the U.S. and Europe for today’s action, Sengoku said. Japan will continue to “take bold steps as needed, including intervention,” he said.
Prime Minister Naoto Kan yesterday was re-elected head of the Democratic Party of Japan, defeating challenger Ichiro Ozawa. Ozawa during his campaign urged the government to intervene to weaken the yen. Kan responded by saying he was ready to act as needed, looking at “various scenarios examining possible responses from markets when we take a decisive measure.”
To contact the reporters on this story: Takashi Hirokawa in Tokyo at thirokawa@bloomberg.net; Sachiko Sakamaki in Tokyo at Ssakamaki1@bloomberg.net
Sept. 14 (Bloomberg) -- Christian Takushi, fund manager at Swisscanto Asset Management AG, talks about Japan Prime Minister Naoto Kan's victory in a vote for control of the ruling party. He speaks from Zurich with Maryam Nemazee on Bloomberg Television's "On The Move." (Source: Bloomberg)