By Leika Kihara
STRESA, Italy (Reuters) – Japan is ready to take appropriate market action “at any time” to counter excessive movements in the yen, its top currency diplomat Masato Kanda said on Friday, issuing a new warning about the possibility of a renewal of the exchange rate. tariff intervention.
“Under a flexible exchange rate regime, we will not need to intervene if exchange rate movements are stable. But if there are excessively volatile movements that have an adverse effect on the economy, we must take action, and doing so would be justified,” Kanda told the media. journalists.
“We are ready to act at any time as necessary against currency movements,” Kanda said after accompanying Japanese Finance Minister Shunichi Suzuki at the session on the first day of the G7 financial leaders meeting in the city of Stresa. , in northern Italy.
At the meeting, Japan told its G7 counterparts that vigilance was needed against excessive volatility in the currency market driven by speculative moves, Kanda said.
Japan also told the meeting that it was important to “respond appropriately” to excessive and disorderly movements in the currency market that would harm the economy, he added.
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