Japan's FinMin, BOJ, FSA hold emergency talks after yen's surge
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E-mail Xinhua, August 5, 2019
An emergency meeting was conducted Monday between Japan's Finance Ministry, the Bank of Japan (BOJ) and the Financial Services Agency (FSA) following the yen's surge against the U.S. dollar.
Due to heightening concerns over trade issues and the potential ramifications these could have on the future course of the global economy, and on the back of a global equities rout late last week, investors have been fleeing from riskier assets like stocks to safe havens, like the Japanese currency.
Such moves push the price of the yen up versus a basket of other currencies, causing concerns among the government and central bankers here about excessive volatility.
As the benchmark Nikkei stock index tumbled Monday to a two-month closing low, the U.S. dollar dropped to its lowest level in seven months in the upper 105 yen zone in Tokyo on Monday.
The dollar was quoted at 105.94-95 yen at 5 p.m. local time compared with 106.56-66 yen in New York and 106.91-92 yen at 5 p.m. local time in Tokyo on Friday.
During the day, it moved between 105.79 yen and 106.68 yen, trading most frequently at the 106.03 yen mark.
The euro, meanwhile, fetched 1.1130-1131 dollars and 117.91-95 yen against 1.1101-1111 dollars and 118.30-40 yen in New York and 1.1113-1114 dollars and 118.81-85 yen in late Friday afternoon trade in Tokyo.
Yoshiki Takeuchi, the Finance Ministry's vice finance minister for international affairs, told a press briefing that the yen's rapid moves were undesirable.
"Excessive volatility is negative to the economy. We will closely monitor the moves," Japan's top currency diplomat said Monday after the meeting.
At the emergency meeting, the officials agreed that the yen's latest moves were a result of heightening concerns over trade issues, coupled with the U.S. Federal Reserve cutting its interest rate last week for the first time in more than a decade.
Those in attendance agreed, however, according to Takeuchi, that the Japanese and broader global economy have remained in a "stable" condition.
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