(Bloomberg) -- Senior officials from Japan’s finance ministry, central bank and financial regulator met Thursday in a show of vigilance over a strong yen and as the government announced a state of emergency in Tokyo over the coronavirus.
“The stability of financial markets is extremely important,” the finance ministry’s top currency official, Kenji Okamura, told reporters after the meeting. “The government and Bank of Japan will work together as needed while carefully watching markets and the economy.”
The three-way meeting reflects increased nervousness among authorities after the yen strengthened to as high as 102.59 against the dollar Wednesday, a nine-month high, pushing Japanese exporters closer to loss-making levels when they are already facing lower demand amid the pandemic.
The 103 level is seen as a key level for maintaining profitability by non-manufacturers, according to a Cabinet Office report. The 100.20 level is seen by big exporters as the overall turning point between profits and losses, according to the report.
The yen was trading mostly unchanged at around 103.36 against the dollar at 5:35 p.m. local time following Okamura’s remarks, having already weakened since yesterday.
Thursday’s meeting represents an escalation in action by Japan’s authorities to try to keep currency gains at bay. A finance ministry official yesterday sent a calibrated signal to the market, saying stability is desirable in the foreign exchange market.
The yen is gaining at a particularly tough time for Japan. Prime Minister Yoshihide Suga Thursday declared a state of emergency for Tokyo and surrounding prefectures, after the capital posted a record 2,447 virus cases in a day.
While less stringent than the measures introduced last year, the announcement is likely to significantly hit the domestic economy.
©2021 Bloomberg L.P.
Últimas Noticias
Debanhi Escobar: they secured the motel where she was found lifeless in a cistern
Members of the Specialized Prosecutor's Office in Nuevo León secured the Nueva Castilla Motel as part of the investigations into the case
The oldest person in the world died at the age of 119
Kane Tanaka lived in Japan. She was born six months earlier than George Orwell, the same year that the Wright brothers first flew, and Marie Curie became the first woman to win a Nobel Prize
Macabre find in CDMX: they left a body bagged and tied in a taxi
The body was left in the back seats of the car. It was covered with black bags and tied with industrial tape
The eagles of America will face Manchester City in a duel of legends. Here are the details
The top Mexican football champion will play a match with Pep Guardiola's squad in the Lone Star Cup
Why is it good to bring dogs out to know the world when they are puppies
A so-called protection against the spread of diseases threatens the integral development of dogs
