Japan Threatens Currency Intervention as Yen Nears Year-to-Date Low Amid Speculative Trading

Currency official Masato Kanda warns speculative trading is behind sharp yen moves, as it hits 15-year low against euro and one-year low against dollar.

• Japan's top currency official, Masato Kanda, has warned that the country is ready to intervene in the currency markets if needed to avoid long-term damage to the economy, as the yen nears a year-to-date low.
• Kanda has noted that speculative trading is the biggest contributing factor to the recent movements in the yen's value, causing it to reach a 15-year low against the euro and a one-year low against the dollar.
• The Bank of Japan's (BOJ) minor step towards ending years of monetary stimulus has failed to convince many investors this week, resulting in a further decline of the yen to 151.350 against the dollar.
• Japanese authorities have previously intervened in the market to protect the yen, the most recent instance being in October 2022 when the yen fell to a 32-year low of 151.94 against the dollar.
• The ongoing depreciation of the yen is causing increased import prices and a rise in households' cost of living, putting Japanese authorities under pressure to take action.

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