Masato Kanda, Japan’s esteemed currency diplomat, refrained from providing commentary on potential foreign exchange (FX) intervention during Monday’s discourse. Amid speculation surrounding intervention measures, Kanda remained taciturn regarding any official actions taken.
In his additional remarks, Kanda reiterated Japan’s commitment to addressing excessive fluctuations in the forex market through suitable measures. However, he abstained from specifying a predetermined threshold for what constitutes an appropriate level of currency valuation.
Expressing concern over the detrimental impact of speculative and rapid FX movements on the economy, Kanda emphasized their unwelcome consequences. He underscored the readiness of Japanese authorities to remain vigilant and responsive to market dynamics, asserting their preparedness for potential intervention around the clock.
Market sentiment reacted to the unfolding events, with the USD/JPY pair exhibiting signs of recovery near 155.80 as of the time of reporting. The pair had experienced a notable decline to 154.50 earlier in the Asian trading session, amid speculation of Japanese authorities’ intervention. Despite the rebound, the pair remains down by 1.53% for the day, reflecting the market’s sensitivity to FX dynamics.
