Japan’s top currency diplomat Masato Kanda commented on the weaker Japanese Yen (JPY) on Thursday. Kanda stated that it’s important for FX to move stably, reflecting fundamentals.

Key quotes

“Strong market interest in US rate cut timing and BOJ policy outlook, both of which could be used by speculators as an excuse for volatile market moves.”

“Always communicate closely with financial authorities, including the BOJ and the Fed.”

“Declines to comment on BOJ policy beyond saying it is among ‘important events’ when asked about ending negative interest rates.

“Always carefully watch the impact of central bank decisions on financial markets; will continue to do so.”

“It is important for currency exchange rates to move stably, reflecting economic fundamentals.”

“Ultra-loose monetary policy helped pull the economy out of a deflationary state but also had negative side effects.”

“US economy is stronger than expected, but if tight monetary policy is prolonged, that could hurt domestic consumption, become a risk to global growth.”

Market reaction

A mild verbal intervention by Japan’s top currency diplomat Masato Kanda had little to no impact on the Japanese Yen’s performance against its rivals. At the time of writing, USD/JPY is trading at 147.77, gaining 0.07% on the day.