Japan takes necessary measures to deal with excessive depreciation of the yen
International Business News – According to Reuters reported on September 11, a Japanese government spokesman said Japan must take measures to deal with the yen’s “excessive unilateral” exchange rate movements.
The report said that Japan’s Deputy Chief Cabinet Secretary Seiji Kihara said on September 11 that the Japanese government must take the necessary measures to deal with the excessive depreciation of the yen, and reiterated the authorities’ warning about the yen’s exchange rate falling to a 24-year low.
Asked about the yen’s recent decline on a television program, Seiji Kihara said, “As for excessive unilateral exchange rate movements, we will closely monitor the situation and must take the necessary measures.”
The yen fell to a 24-year low against the dollar recently as investors focused on the widening divergence between the Federal Reserve’s aggressive interest rate hikes and the Bank of Japan’s (BOJ) commitment to keep interest rates ultra-low.
Seiji Kihara said, “I won’t comment on monetary and interest rate policies because they fall under the Bank of Japan’s jurisdiction.”
Seiji Kibara also said the government will consider measures to further open Japan’s borders to overseas visitors “in the near future,” such as lifting the limit on the number of daily entries.
Seiji Kibara said, “The weak yen is most effective in attracting inbound tourism.” He also said that further measures must be taken to attract more foreign tourists to Japan.
Reports say Japan has eased border controls since Sept. 7, raising the ceiling on daily arrivals to 50,000 and allowing entry for tourists who choose the package tour method without a guide.
Analysts say removing this cap and allowing more tourists to enter the country is crucial to attracting foreign investment into Japan and reviving the country’s fragile economy.