Yen Gains “Extremely Concerning”

May 5, 2016 (Tempus, Inc.) – The Japanese Yen strengthened further as a result of pessimism across global markets. The safe-haven currency is now 13.0% stronger in 2016. This is worrying Minister of Finance Taro Aso, who spoke over the weekend about the need to consider intervention in the FX market.

He said it was “extremely concerning” that last week JPY experienced a five-yen move in a matter of only two days last week. Aso added that this was “clearly a one-sided speculative move” and that under the G-20 agreement a response to this kind of wild swing would be appropriate.

Meanwhile, Bank of Japan Governor Haruhiko Kuroda said monetary policy is currently focused on price stability and not on the exchange rate. The U.S. complained last week that Japan and China are not doing enough to monitor FX and accused them of unfair practices.

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