USDJPY : The Japanese yen exchange rate will gradually weaken
Given the threat of a weaker Japanese yen and higher inflation, the Japanese government appears willing to intervene in the foreign exchange market if the USD/JPY exchange rate becomes too volatile.
Japanese Finance Minister Shunichi Suzuki said in a meeting with G20 leaders that Japan may need to take "appropriate measures" in the foreign exchange market. He warned that global monetary tightening could increase the volatility of exchange rate movements. However, he also stressed that excessive volatility in the foreign exchange market is undesirable and may require support measures from the Japanese government.
Japanese Finance Minister Shunichi Suzuki said in a meeting with G20 leaders that Japan may need to take "appropriate measures" in the foreign exchange market. He warned that global monetary tightening could increase the volatility of exchange rate movements. However, he also stressed that excessive volatility in the foreign exchange market is undesirable and may require support measures from the Japanese government.
