Japan Sticks to Yen Intervention Plan Amid Fed Rate Hike
Japan's government has reaffirmed its commitment to maintaining an orderly yen market following the US Federal Reserve's interest rate hike on Wednesday. The move triggered a broad dollar rise, causing the yen to fall to around 155.50 in Asia on Thursday.
The yen had reached a seven-month high of 152.89 earlier this month due to bets that the Bank of Japan would raise rates speedily. However, Chief Cabinet Secretary Minoru Kihara stated that the government's stance has not changed since its joint intervention with the US at the end of July.
Finance Minister Satsuki Katayama echoed Kihara's sentiments, emphasizing that Japan aims to address excessive currency volatility. The BOJ is set to raise interest rates on Friday to a 31-year high of 1.25 per cent, but analysts believe this move may not have a significant impact unless Governor Kazuo Ueda delivers a hawkish message.