The Bank of Japan on Thursday stuck to its dovish monetary policy as the government made a surprise move to intervene in the currency market amid rising inflation and the sharp fall in the yen¡¯s value against the dollar.
Right after the BOJ¡¯s announcement, the weakening of the yen accelerated to breach the key ?145 line, prompting the Japanese government to give the green light to a yen purchasing intervention for the first time in 24 years. The intervention briefly bumped up the yen¡¯s rate to the ?140 level.
During a hastily arranged news conference Thursday evening, Finance Minister Shunichi Suzuki addressed the topic of why the government stepped in, saying, ¡°In principle, exchange rates should be decided in the markets, but we cannot tolerate repeated rapid fluctuations by speculative moves.¡±
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