Taro Aso isn’t going to intervene in FX market lightly
On Tuesday, Taro Aso, Japan’s Finance Minister told he would respond to severe currency volatility in compliance with the latest G20/G7 agreements. In other words, the statesman isn’t going to intervene the FX market lightly.
Aso was talking to journalists when asked how he would react to rapid market swings around the UK’s June 23 referendum.
Japan’s minister refused to comment on whether his country has solid plans in case the United Kingdom decides to abandon the European Union.
Japanese officials are greatly concerned in the yen’s spike. The given currency is traditionally considered to be a reliable safe-haven asset during hard times. Obviously, Brexit is expected to generate tons of risks for investors.
The country’s authorities have stayed out of the market since this Asian country last intervened in November 2011.
Last month G7 leaders dared to reaffirm their opposition to competitive currency devaluation, warning it could generate excessive volatility as well as disorderly movements in the foreign exchange market.