Japan says recent yen moves driven by speculative trade
Holograms, which show different images and colours depending on the angle at which they are viewed, are seen on the new Japanese 5,000 yen banknote as the new note is displayed at a currency museum of the Bank of Japan, on the day the new notes of 10,000 yen, 5,000 yen and 1,000 yen went into circulation, in Tokyo, Japan July 3, 2024. REUTERS/Issei Kato/Pool
WASHINGTON, April 17 : Japanese Finance Minister Satsuki Katayama said on Friday recent moves in the yen have been driven by speculative trade to a significant extent, when asked about the currency's rebound following Iran's decision to open the Strait of Hormuz.
Iran's Foreign Minister Abbas Araqchi said in a post on X that passage for all commercial vessels through the Strait of Hormuz was "completely open" for the remainder of the 10-day truce between Israeli forces and Iran-backed Hezbollah agreed to in Lebanon.
The dollar fell against a broad range of currencies, including the yen, as traders unwound positions in the safe- haven currency.
"Recent moves have been driven by speculative trade to a significant extent, so it's natural for markets to react in such a way," Katayama told reporters when asked about the yen's rise on news of the opening of the Strait of Hormuz.
Katayama made the remark to reporters after attending the IMF, G7 and G20 gatherings in Washington.
A weak yen has been a source of headaches for Japanese policymakers as it pushes up import costs and broader inflation.
Japanese authorities, including Katayama, have been issuing verbal warnings against sharp yen falls, saying they stood ready to act against speculative moves in foreign exchange markets.
Japan and the U.S. agreed to strengthen communication on exchange rates, Katayama had said after her meeting with U.S. Treasury Secretary Scott Bessent on Wednesday.
The yen briefly rose to 158.18 per dollar on Friday, off the 160-per-dollar level that has sparked past yen-buying interventions by Japanese officials.
