Finance Meeting Halts Recent Yen Depreciation

The yen’s recent decline was at least temporarily halted by a Tuesday, 30 May meeting of Japan’s top financial authorities.

The unscheduled assembly of Officials from the Finance Ministry, Financial Services Agency and Bank of Japan led to speculation that it was a prelude to intervention, which was enough to stop the depreciation that characterised most of May.

Last fall, Tokyo instituted a policy of purchasing yen and selling dollars to ease the depreciation, ultimately on a scale of nearly three trillion yen.

Before this effort began to show results the yen fell to 150 per dollar on 30 October, a 32-year low.

As incomes have been rising this year, as has the stock market, the recent yen depreciation is seen as a serious issue, but perhaps not as urgent as last fall when the other positive economic indicators were absent.

Sources
Nikkei Asia – 1 June 2023
Nikkei Asia – 20 October 2023

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