TOKYO (Reuters) -Japan Finance Minister Katsunobu Kato on Wednesday reiterated that the government would take appropriate action against excessive movement on the foreign exchange market, as the yen has seen high volatility ahead of a key monetary policy meeting.
“As I have said previously, we have been seeing rather sharp movement,” Kato said at the Japan National Press Club. “The government has been alarmed over foreign exchange movement, including that driven by speculators.”
Kato made the remarks when asked how a potential interest rate hike by the Bank of Japan would affect foreign exchange, after BOJ Deputy Governor Ryozo Himino said on Tuesday the central bank would debate whether to raise rates at a policy meeting next week.
BOJ Governor Kazuo Ueda on Wednesday reiterated the bank’s plan to debate a potential rate hike at the upcoming meeting. The yen subsequently rose by roughly 0.5% against the U.S. dollar to hit 157.225.
Kato said the finance ministry will closely monitor the BOJ’s discussions next week.
“We expect the BOJ to pursue appropriate monetary policy” for inflation to sustainably achieve its 2% target, he said.