Cabinet ministers said Wednesday that Japan will remain ready to intervene in the foreign-exchange market to stem volatility, after the nation's monetary authorities stepped into the currency market Tuesday in New York to stem the yen's ascent.
"Rapid fluctuations are not favorable," Chief Cabinet Secretary Yasuo Fukuda said. "If there are sudden fluctuations, we will take firm measures."
Speaking at the House of Representatives Budget Committee, Finance Minister Sadakazu Tanigaki said, "There is no change in our policy to take appropriate measures at proper times whenever there are irregular movements.
"There are some good data about the Japanese economy, but the U.S. economy is also showing a strong recovery," he said. "I don't think we are facing a situation where a one-way yen appreciation is warranted."
Japanese monetary authorities intervened through the Federal Reserve Bank of New York overnight to prevent sharp gains in the yen from hurting the nation's export-led recovery.
Tuesday's market intervention appeared to have been conducted at around 110.30 yen. The dollar climbed to 111 yen.60-70 in New York shortly after the intervention.
Although the Bank of Japan has been intervening in the currency market heavily on behalf of the Finance Ministry this year, it was the first time in 15 months for the BOJ to step into the market through another country's monetary authorities.