TOKYO (Reuters) -Japanese Finance Minister Katsunobu Kato reiterated on Wednesday that the government would take appropriate action against excessive moves in the currency market as the yen has seen high volatility ahead of a key monetary policy meeting.
“As I said before, we have seen quite a sharp movement,” Kato said at the Japan National Press Club. “The government is alarmed at currency movements, including those driven by speculators.”
Kato made the comments when asked how a possible interest rate hike by the Bank of Japan would affect the foreign exchange, after BOJ Deputy Governor Ryozo Himino said on Tuesday that the central bank would discuss whether to raise rates at a policy meeting next week .
BOJ Governor Kazuo Ueda on Wednesday reiterated the bank’s plan to debate a possible rate hike at its upcoming meeting. The yen then rose about 0.5% against the US dollar to reach 157.225.
Kato said the Treasury Department will closely monitor the BOJ’s discussions next week.
“We expect the BOJ to implement appropriate monetary policy” so that inflation can sustainably reach its 2% target, he said.
