Senior officials from Japan’s Treasury Department, the central bank and the financial regulator met on Thursday to be vigilant about a strong yen and the government announced a state of emergency in Tokyo over the coronavirus

“The stability of the financial markets is extremely important,” Kenji Okamura, chief currency officer of the Treasury Department, told reporters after the meeting. “The government and the Bank of Japan will work together as necessary, while closely monitoring the markets and the economy.”

The three-way meeting reflects authorities’ mounting nervousness after the yen rose to 10259 against the dollar Wednesday, a nine-month high that brings Japanese exporters closer to loss levels if they are already at one in the face of the pandemic faced lower demand

Level 103 is viewed as a key level for maintaining profitability for non-manufacturers, according to a report from the Cabinet Office The 100According to the report, level 20 is viewed as the general turning point between profit and loss by large exporters

The yen was largely unchanged at around 10336 against the dollar at 5:35 pm local time following Okamura’s comments that have been weakening since yesterday

Thursday’s meeting marks an escalation by the Japanese authorities to try to keep currency gains in check. An official from the Treasury Department yesterday sent a calibrated signal to the market that stability in the currency market is desirable

The yen wins in a particularly difficult time for Japan Prime Minister Yoshihide Suga declared a state of emergency for Tokyo and the surrounding prefectures on Thursday after the capital broke a record of 2 in one dayHad recorded 447 virus cases

While the announcement is less stringent than the measures introduced last year, it is likely to have a significant impact on the domestic economy

Meeting

World News – FI – Japanese officials meet to show vigilance on yen near 9-month high

Source: https://www.bloomberg.com/news/articles/2021-01-07/japan-officials-meet-to-show-vigilance-on-yen-near-9-month-high