By Makiko Yamazaki and Rocky Swift
TOKYO (Reuters) – Japan’s top currency diplomat Atsushi Mimura said on Friday that recent currency moves are “somewhat one-sided and rapid”, in a fresh warning against speculative trading as the yen fell past the key 150 line against the dollar .
“We as Japanese authorities are closely monitoring currency movements, including speculative ones, with a great sense of urgency,” Mimura told reporters.
The dollar reached 150 yen for the first time since August 1 as solid US retail sales data reinforced expectations that the Federal Reserve will make modest interest rate cuts over the next year and a half as the world’s largest economy remained resilient.
A weak yen could again become a major concern for Japanese policymakers ahead of the Oct. 27 general election, as it could dampen consumption by driving up the cost of importing fuel, food and raw materials.
In addition, Deputy Chief Cabinet Secretary Kazuhiko Aoki reiterated at a regular press conference on Friday that it is important for currencies to move in a stable manner, reflecting economic fundamentals.
He also reiterated that authorities were closely monitoring currency developments, including speculative movements.
The yen has been volatile in recent months, first driven higher by the Bank of Japan’s unexpected rate hike in late July and then pushed down by waning concerns about the U.S. economy.
New Japanese Prime Minister Shigeru Ishiba also stunned markets and pushed the yen lower by saying the economy was not ready for further rate hikes.
Japanese authorities spent 5.53 trillion yen ($37 billion) on currency market interventions in July to lift the yen from a 38-year low to above 160 per dollar.
($1 = 149.9400 yen)
