The Japanese government will not intervene currency markets without the necessary attention, according to the Finance Minister Taro Aso. Despite of the JPY appreciation, the markets have assessed the potential impact of possible Brexit, which weaken the pace of appreciation of the Japanese currency.
“Concerning the foreign exchange intervention, we will not make it lightly”, said the Japanese Finance Minister, Taro Aso. “G7 and G20 agreed that sudden movements are not desirable and we aim to have stability. We will act in unison with the agreement”, added he.
The comments of Finance Minister come at a time when the JPY rose more than 5% against the USD in June after global markets await the outcome of the British referendum scheduled June 23.
The vote and its effects on the global economy boosted demand for the JPY as a safe haven. The Finance Minister said that the market already somewhat calculated Brexit, which has reduced the pressure for appreciation of the JPY.
Aso last week announced its concerns regarding unilateral, large and speculative moves in the currency market.