By Peter Landers
TOKYO–Japanese Finance Minister Shunichi Suzuki, responding to recent sharp weakness in the yen, said Monday that the government would take necessary action to prevent what he described as excessive fluctuations in the currency market.
Appearing in Parliament, Mr. Suzuki declined to say whether the government intervened to buy yen on Friday in New York or Monday in Tokyo, two occasions when the Japanese currency suddenly strengthened without any other obvious explanation.
However, he said, “it is desirable that the yen rate be stable.”
He added, “In particular, excessive fluctuation as a result of moves by speculators is something we absolutely cannot permit. When such moves take place, we will take necessary action.”
Mr. Suzuki has used similar language in the past to describe the government’s response to the weak yen. The government has announced intervention only once so far this year, on Sept. 22.
Also appearing in Parliament, Bank of Japan Gov. Haruhiko Kuroda reiterated his view that the country’s inflation, currently running around 3%, would fall next year as the effects of shocks to the market this year wear off.
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