Japan Kanda says closely watching FX moves with high sense of urgency

USD/JPY has lost a few bids on the remarks from Kanda.

Kanda’s comments are more forceful than what we have been hearing last week, mentioning speculation, taking steps …

• Have been closely watching fx moves with high sense of urgency
• Will take
  appropriate steps to respond to excessive weakness of yen without
  excluding any measures
• Yen’s current
  weakness is due to speculation, not reflecting fundamentals

• Current yen weakness does not reflect fundamentals
• Yen weakness based
  on speculative moves has negative effect on economy
• Yen weakness from
  speculative moves is not good under any circumstances
• Says he doesn’t have a specific forex level in mind, when asked about
  ‘defence line’
• Will make
  comprehensive decision looking more at whether there is excessive
  moves rather than levels
• Sudden forex moves
  are not desirable

Japan’s Finance Ministry’s Vice Finance Minister for International Affairs Kanda. He is the official who will instruct the BOJ to intervene, when he judges it necessary. Often referred to as Japan’s ‘top currency diplomat’.

This article was written by Eamonn Sheridan at www.forexlive.com.