Shafaqna English- Mitsuhiro Furusawa, who previously served as Japan’s highest-ranking currency official, has declared that the Japanese government retains the option of launching a coordinated foreign-exchange intervention with its international partners on a completely spontaneous basis – with no predetermined schedule.
Concurrently, he emphasized that authorities could also deploy monetary policy tools by accelerating the pace of interest rate increases beyond what financial markets currently anticipate. This dual-pronged strategy, according to Furusawa, is designed to counteract the yen’s ongoing depreciation and restore stability to the currency.
Furusawa characterized the yen’s present exchange rate as unequivocally undervalued, asserting that this excessive weakness is inflicting measurable damage on Japan’s economy through a sharp rise in the prices of imported raw materials, energy, and consumer goods.
Moreover, he explicitly conditioned future intervention on a specific threshold: should the currency depreciate back to the same trough that prompted last month’s coordinated US-Japan market action, then both governments are prepared to mount a second joint operation without hesitation.