Japanese authorities may intervene to calm volatility in the currency market although exchange rates should be determined by market forces, the International Monetary Fund said in a report released Wednesday.
In its annual staff report on Japan, the IMF advised the country to allow the market to determine the yen's exchange rate, "although intervention could be used to counter volatile or disorderly market conditions."
The comment suggests the Washington-based organization is not necessarily against market intervention if the yen rises sharply against the dollar and other major currencies.