May 1, 2012
Japan's Top Forex Bureaucrat Warns Against "Rapid" Yen Rise
The Japanese government on Tuesday escalated its warnings about the yen after the currency rose to a two-month high, with its top currency policy-making bureaucrat calling the yen's move "somewhat rapid" and renewing his pledge to act if necessary.
The remarks from Takehiko Nakao, vice finance minister for international affairs, sparked little reaction from the currency market partly because they contained no hints of imminent intervention to weaken the yen, such as threats of "decisive steps."
But like many other Japanese bureaucrats, Nakao usually avoids discussing foreign exchange issues on record, so his decision to speak out is a sign that Tokyo is getting more serious about talking down the yen after it touched Y79.73 to the dollar on Monday, the highest since Feb. 22.
"We are concerned about the somewhat rapid appreciation of the yen since the end of last week," which is "reflecting market speculation," Nakao told reporters at the Ministry of Finance. "We will continue to closely monitor the market with caution so that we can act in a timely, appropriate manner when needed."
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