2023-06-30 03:31:40 ET
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The Japanese yen ( USD:JPY ) dropped past the 145 level to the dollar on Friday, its lowest since November, following which the country's Finance Minister Shunichi Suzuki said the government would intervene if the currency weakened excessively.
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"The government is watching currency market moves with a great sense of urgency," said Suzuki. "We will respond appropriately if the moves become excessive."
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Recent weakness in the currency has sparked speculation that the Japanese government will likely act to ensure stability in the currency. The last time the yen touched the 145 level in September 2022, the Bank of Japan intervened by buying the currency for the first time since 1998.
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Earlier, BOJ Governor Kazuo Ueda reiterated that "there's still some distance to go" in sustainably achieving the 2% inflation target. The BOJ's ultra-dovish policy stance, bucking the trend of hawkish policies in other countries, has undermined the yen.
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Latest inflation data from Japan showed that core Tokyo CPI held steady, rising 3.2% in June from a year earlier, exceeding the BOJ's 2% target for the 13th consecutive month.
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More on Japanese yen
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FXY: Government Officials Warn Of Intervention; Take Profits
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Japan spends record $43B in October to curb yen's plunge against dollar
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Japanese yen weakens past 145 level to seven-month low