The Bank of Japan (BoJ, BOJ) President Kuroda Haruhiko held talks with Japanese Prime Minister Fumio Kishida on the morning of the 30th. The market speculated that the Japanese government and the Bank of Japan may cooperate to deal with the recent sharp depreciation trend of the yen, which caused the yen to rise today, and once bounced more than 1 % (i.e. the dollar fell more than 1% against the yen at one point).
As of 13:05 on the 30th, Taipei time, the dollar against the yen depreciated (that is, the yen rebounded) 0.84% to 121.83, and earlier fell to 121.28, a decline of 1.3%.
According to Japanese media reports, Bank of Japan President Haruhiko Kuroda visited the Prime Minister’s residence on the morning of the 30th and held talks with Prime Minister Fumio Kishida. The Kuroda and Kishida talks are expected to include not only financial market movements such as the recent sharp depreciation of the yen and rising interest rates, but also an exchange of views on matters such as Russia’s deployment of troops to Ukraine and the rising uncertainty in the global economy.
The President of the Bank of Japan and the Prime Minister of Japan will hold regular talks at the Prime Minister’s official residence, with the last meeting taking place on November 4, 2021.
Because of Kuroda and Kishida’s talks, the market speculated that the Japanese government and the Bank of Japan may cooperate to deal with the current sharp depreciation trend of the yen, which also pushed up the yen exchange rate today.
Japanese Finance Minister Makoto Kanda held talks in the Ministry of Finance on March 29 with Andy Baukol, Acting Deputy Secretary of the U.S. Treasury Department. After the meeting, Masato Kanda told the press corps that “the exchange rate stability is very important, and we do not want drastic changes.” The U.S. dollar rose above the so-called “125” level of the Kuroda line of defense against the yen on March 28, hitting a new high in six years and seven months.
Regarding the possibility of intervening in the exchange rate, Kanda said, “The exchange rate is determined by the market. We will conduct close communication with monetary authorities such as the United States and make appropriate responses.”