Japan Finance Minister warns markets as yen nears intervention danger zone By Reuters

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Japan Finance Minister warns markets as yen nears intervention danger zone

TOKYO -Japan's finance minister said on Tuesday that authorities won't rule out any options in dealing with excessive currency volatility, underlining a warning that has kept traders on alert for intervention to prop up the weak yen.

That verbal warning prompted a mini rally in the yen, highlighting how sensitive markets are to potential intervention. "We share the view with the U.S. and other authorities that excessive volatility is undesirable," Suzuki said. Analysts doubt Japan can win U.S. understanding to intervene by selling the dollar in favour of the yen because that could aggravate stubbornly high inflation in the U.S..

 

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