Yen Nears 160 per Dollar; Japan’s Finance Ministry Vows “Full-Scale Response”

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Tokyo, The Financial News – Correspondent Seo Hye-jin – As the yen–dollar exchange rate approached 160 yen to the dollar, the Ministry of Finance Japan (MOF) declared on the 23rd that it "will take every possible measure from all perspectives." 
\r\nAccording to the Sankei Shimbun, Mimura Atsushi, Vice Minister of Finance for International Affairs, was asked by reporters about the ongoing weakening of the yen. He responded, "We will take into account the impact of the exchange rate on people’s daily lives and on the economy," reiterating the government’s stance. 
\r\nIn the Tokyo foreign exchange market, the yen–dollar exchange rate at 9 a.m. that day was around 159.18–159.20 yen per dollar, up 0.2 yen from the previous trading day, meaning the yen had weakened.
\r\nEarlier, on the 20th (local time) in the New York foreign exchange market, the yen–dollar exchange rate closed at around 159.20–159.30 yen per dollar. On the 19th, after the Bank of Japan (BOJ) kept its policy rate unchanged at 0.75% at its monetary policy meeting and BOJ Governor Kazuo Ueda stated at a press conference that the bank would maintain its rate-hike stance, the yen briefly strengthened to about 157.50 yen per dollar. It then weakened again, returning to the 159-yen level per dollar. 
\r\nThe Nikkei pointed out that the fact the move into the 157-yen range lasted only a single day shows that the key factors driving the current exchange rate are not the BOJ’s monetary policy, but rather the situation in the Middle East and crude oil prices.
Commenting on current market conditions, Mimura said, "Basically, I will refrain from commenting in detail," but added, "Among market participants, there are views that speculative moves in the crude oil futures market are also affecting the foreign exchange market."
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sjmary@fnnews.com Seo Hye-jin Reporter