No Need to Comment on Suspected Intervention: Japan Official

Tokyo, May 7 (Jiji Press)–Japan’s top currency diplomat said Thursday that there is no need to comment on a suspected yen-buying market intervention by Japanese authorities during the Golden Week holiday period in the country through Wednesday. “We continue to closely monitor the market with a sense of caution,” Atsushi Mimura, vice minister of finance for international affairs, told reporters at the Finance Ministry building, expressing the view that speculative moves are still seen in the currency market. “There are no rules to limit the number of interventions,” Mimura added. In overseas trading on Wednesday, the yen suddenly surged from levels around 157.50 yen per dollar to levels near 155 yen. At noon on Thursday, the dollar stood at 156.33-34 yen, down from 156.62-63 yen at 5 p.m. Friday. The Tokyo market was closed from Monday through Wednesday for national holidays. “It is highly likely that Japanese authorities conducted a market intervention to prevent the yen from weakening further amid thin trading during the holiday period,” said an official of a domestic securities firm. On April 30, the government and the Bank of Japan are believed to have conducted a market intervention totaling 5 trillion to 6 trillion yen, causing the yen to rally by more than 5 yen per dollar. The following day, Mimura said that the Golden Week was “still in its early stages,” hinting at the possibility of further action. END [Copyright The Jiji Press, Ltd.]