Japanese authorities are focusing on the speed of currency fluctuations rather than targeting at any specific levels when they judge any need to intervene in the currency market to stem excessive volatility, analysts say.
Investors often think excessive volatility can be measured over a period of one day or so. But Masato Kanda, Japan’s top currency diplomat said this week any excessive moves can be measured as, say, a period since the start of this year, during which the yen weakened by around 20 yen to the dollar.
“There’s no change in the government stance,” Suzuki said, when asked about intervention and what defines an excessive move.
The minister added that authorities should make a comprehensive judgment on what constitute excessive moves, taking various factors into account.
Suzuki also said the government would continue to make any intervention in stealth, meaning authorities would not make an announcement immediately when they intervene in the currency market.
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