Japanese yen is heading lower today as risk appetite makes an appearance. Also weighing on the yen is more talk about possible intervention to keep the yen weak against its currency counterparts.
Japan has a new finance minister, and he appears ready to follow in the footsteps of Jun Azumi. The new finance minister, Koriki Jojima, said that policy makers stand ready to “take bold actions” if they think it is necessary to rein in the yen in Forex trading. The tough talk indicates that Japan is still willing to intervene in the currency market in order to keep the yen lower against its counterparts.
For years, Japan has preferred a weak yen. Japan has spent decades trying to spur economic growth, and a lower yen helps keep the economy afloat, as well as improve exports, since the weaker currency gives an edge in global trade. However, the yen has been seeing strength recently. When it appears to get out of hand, Japanese monetary officials haven’t been shy about intervening to weaken the currency again.
At 13:24 GMT USD/JPY is up to 78.1080 from the open at 77.9920. EUR/JPY is also higher, up to 100.9550 from the open at 100.5200. GBP/JPY is heading higher as well, moving up to 126.0860 from the open at 125.8150.
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