In the Asian session on Wednesday (May 31), USD/JPY fell back from its highs, temporarily reporting 139.77, a drop of 0.01%. Japan’s Ministry of Finance, the Central Bank and the Financial Services Agency held a tripartite meeting. He said that excessive exchange rate fluctuations are undesirable. The government will continue to monitor market trends closely and take appropriate action when necessary.
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Kanda said the three parties confirmed that they will maintain close contact under the new structure and discuss how to deal with various risks, including the U.S. debt ceiling and banking events. He declined to comment on the yen’s current exchange rate against the dollar at around 140 yen to the dollar, saying volatility was more important than the level of the exchange rate. At the meeting, the government and the central bank reached a consensus that it is necessary to pay close attention to the dynamics of the financial and foreign exchange markets and their impact on the Japanese economy. He denied that the tripartite meeting was called to warn of a weaker yen.
