Japan does not rule out any options in countering excessive volatility in foreign exchange markets, Finance Minister Shunichi Suzuki said Friday, adding the government is monitoring developments with a heightened sense of urgency.
Speaking at a press conference amid the yen's recent weakness, Suzuki said Japan is in close communication with monetary authorities in countries such as the United States and they share the view that excessive currency volatility is undesirable.
The latest verbal warning regarding the yen's depreciation against the U.S. dollar came amid market vigilance over the possibility of another intervention by Japanese monetary authorities.
"The government will respond to excessive volatility without ruling out any options, while monitoring currency market developments with a heightened sense of urgency," Suzuki told the press conference shortly before the conclusion of the Bank of Japan's two-day policy meeting.
The yen has been falling toward the psychologically important 150 line against the dollar, amid the divergent monetary policy paths of Japan and the United States. The BOJ has stuck to ultralow interest rates while the Federal Reserve is in a rate-hike cycle to fight inflation.
"We have been in close communication with the monetary authorities of other nations, including the United States. We are of the view that excessive volatility is not desirable," Suzuki said, adding Japan's yen-buying, dollar-selling operations late last year were effective "to a certain degree."