The Japanese government continues to make it clear that it is ready to intervene in the currency markets in order to keep the yen weak against other currencies. Once again, as concerns about the global economy surface, and as risk aversion sets in, the Japanese yen is gaining strength. This state of affairs is undesirable, and Japanese policymakers insist they are ready to intervene to weaken the yen if need be.
Indeed, over the weekend Japanese Finance Minister Jun Azumi made it clear that the government is ready to intervene if necessary in order to keep the yen weak. A weaker yen gives Japan an edge in global trading. The Japanese government continues to try and stimulate the economy with the help of a weaker yen. In the past, Japanese leaders have intervened to keep the yen weak, and it is likely that Azumi is not making idle threats.
Azumi also spoke about the need to keep the IMF’s funding capacity strong. He referenced the sovereign debt crisis in Europe during his speech at the policy steering committee at the IMF, and emphasized the importance of getting the crisis solved, rather than making more temporary measures.
At 13:08 GMT USD/JPY is down to 81.1110 from the open at 81.5165. EUR/JPY is down to 106.4805 from the open at 107.4850. GBP/JPY is down to 130.5560 from the open at 131.4350.
Source: live forex news