
BOJ’s Ueda Meets Premier, States No Discussion on Recent Yen Volatility – Reuters
By Tetsushi Kajimoto and Leika Kihara
TOKYO – Bank of Japan Governor Kazuo Ueda announced that he and Prime Minister Fumio Kishida had discussions on economic developments on Tuesday; however, they did not address the recent fluctuations in currency values.
These conversations followed the dollar’s rise above 145 yen, a threshold that led to Japan’s first yen-buying operation since 1998 in September 2022.
Ueda informed reporters post-meeting that there was nothing specific discussed regarding exchange-rate volatility. He also highlighted that he explained the Bank of Japan’s decision from last month to ease its control over long-term interest rates, to which Kishida reportedly responded with understanding.
Prior to their meeting, the dollar temporarily dipped against the yen but rebounded to approximately 145.98 after news of the talks emerged.
Ueda emphasized that this meeting continued the practice of his predecessor, Haruhiko Kuroda, who met with the prime minister periodically to discuss economic and financial matters. This marked the second meeting of such nature since Ueda took over as BOJ governor in April, with the previous discussion taking place on April 10, focusing on the necessity for flexible policy guidance amid economic uncertainties.
In the prior month, the BOJ adjusted its yield curve control policy to allow for greater freedom in long-term rates while reaffirming its commitment to maintaining an ultra-easy monetary stance, leading the market to focus on the disparity between U.S. and Japanese yields.
Recently, rising U.S. Treasury yields propelled the dollar to 146.565 yen, its highest level since November 10, triggering speculation that Tokyo might intervene once more to support the yen.
A week ago, Finance Minister Shunichi Suzuki cautioned against excessive market volatility, stating that authorities would respond suitably to significant fluctuations. Despite this, government officials have largely remained silent on foreign exchange rates in the days since.