Japan's Kanda Concerned Over Speculative Forex Moves, Yen Down 5%, Agrees with Yellen

Japan's top currency diplomat, Masato Kanda, has expressed significant concern over recent foreign exchange (forex) market movements, which he attributes largely to speculation. Kanda noted that the forex market has been dominated by speculative activities, leading to substantial fluctuations since the beginning of the year. These fluctuations have had a considerable impact on households, pushing up import costs and affecting people's livelihoods. Despite these concerns, Kanda declined to comment on whether the government had intervened in the forex market, stating that any intervention details would be disclosed at the end of the month if they occurred. He emphasized that forex moves not aligned with fundamentals are particularly troubling and that appropriate action will be taken if necessary. Kanda also mentioned that the yen moved 5% in the past month and agreed with U.S. Treasury Secretary Janet Yellen that forex intervention should be rare. He attributed part of the recent forex moves to the yield gap between the U.S. and Japan.