Japan reinforces commitment to yen stability amid market volatility

(MENAFN) Japan's vice finance minister for international affairs has reaffirmed that the authorities are prepared to take necessary measures in the foreign exchange market, while reiterating their stance against direct currency intervention. The official highlighted that the recent gains in the yen do not reflect the underlying economic fundamentals, signaling a high level of vigilance in response to the volatile market conditions. This position underscores Japan's commitment to monitoring and managing market movements carefully, ensuring that any actions taken are in line with broader economic objectives and strategies.

According to the Bank of Japan, up to 3.6 trillion yen has been allocated to counter the yen's decline in the foreign exchange market. This significant expenditure highlights Japan's ongoing commitment to its intervention policy, following a substantial intervention in May which saw 9.7885 trillion yen spent over just four days. These continued efforts reflect a proactive approach to mitigating currency fluctuations and stabilizing financial markets. By adhering to established policy frameworks, Japan aims to maintain financial stability and support its economic goals amidst the challenges posed by dynamic market conditions.

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