Japanese Yen Rate - Japanese government spokesman Hirokazu Matsuno said on Thursday that volatile movements in the foreign exchange market were undesirable, and authorities were closely monitoring the market and were ready to take "appropriate" measures as needed. All forex news information today we summarize directly based on reports from Reuters and Yahoo Finance.

Matsuno delivered the message at a press conference, where he stressed the importance of stable foreign exchange market movements that reflect fundamental conditions. He said that excessive fluctuations in the exchange rate are undesirable. Matsuno commented on the situation as the dollar strengthened in Asian trading, causing the yen to fall 0.46% to 140.735. This came after the Federal Reserve signaled a possible interest rate hike by the end of the year. In his comments, Matsuno said that there was no change in the government's stance on closely monitoring currency market movements. The government remains ready to take necessary measures if needed. The Japanese currency fell 0.7% to 141.08 per dollar, prompting comments from Chief Cabinet Secretary Hirokazu Matsuno that excessive movements were undesirable. Last month, when the yen weakened to the same level, senior currency official Masato Kanda said the government would take action if necessary. The move came after an unscheduled meeting between the Bank of Japan (BOJ), the Finance Ministry and the Financial Services Agency. The hawkish stance from Federal Reserve officials on Wednesday contrasted sharply with the Bank of Japan, which has stuck to its easing policy. The divergence has benefited the dollar versus the yen. The Federal Reserve is projecting a higher interest rate hike than previously seen, while nearly all economists surveyed by Bloomberg believe the Bank of Japan will maintain its ultra-loose monetary policy on Friday. "Given market movements and the Federal Reserve's policy outlook, there is a growing possibility of a three-way meeting between the Bank of Japan, the Finance Ministry and the Financial Services Agency. Such concerns may be building in the market," said Takeshi Ishida, a currency strategist at Resona Bank Ltd. He also said that the upside for the dollar-yen pair may be limited as U.S. Treasury yields have not risen that much." Demand for the dollar was also likely influenced by Japanese importers on Thursday. Japanese importers typically buy U.S. dollars on trading days that are multiples of five, such as the 10th, 15th and 20th of the month. BoJ officials are likely to see little need to adjust their yield curve control program until Friday, based on some improvements in the functioning of the bond market, according to people familiar with the matter. BOJ Governor Kazuo Ueda also said earlier this month that the central bank will maintain a consistent easing policy until its inflation goal is stably achieved, adding to speculation that the BOJ will keep its policy unchanged in the coming months.

The Bank of Japan's (BOJ) Ueda is likely to stick with the bond market on his side for now.

Last year, the yen’s weakness to 146 per dollar prompted Japan to intervene for the first time to prop up the currency since 1998, despite repeated official warnings against direct action. The Japanese currency has fallen about 7 percent this year. “A sustained break above 141 opens the door to a test of 142 and potentially quite quickly,” said Rodrigo Catril, a strategist at National Australia Bank Ltd. in Sydney. “Intervention is unlikely to have a significant effect on the yen’s weakness, but it does provide an opportunity to reset short positions.”

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