The Minister of Finance of Japan Dzyun Azumi on Friday warned again about possible interventions in the foreign exchange market. Speaking to reporters Nikkei newspaper after the meeting of the Cabinet of ministers, he noted, that the The Federal Reserve System's low interest rates lead to increase of speculative operations, and expressed doubt that the strengthening of yen caused by fundamental economic factors.

Dzyun Azumi also warned that the Japanese Government is ready to take decisive steps to stop the growth of the Japanese currency. "I am closely watching the movements in the market and will take appropriate action. My position has not changed. If some one-way movement will be seen in the market, I take decisive action",- he said.

According to him, the part of the responsibility for boom of speculation is lead on Federal Reserve System of USA. "I think that activation of speculative purchases of yen, which began last week, due to persistence of low interest rates of the Federal Reserve System", - he said. On Thursday, the Minister of Finance also shifted the responsibility for the situation in the foreign exchange market on the Chairman of Federal Reserve System Ben Bernank.

The intervention will be carried out if the quotes fall below 75 yen per dollar. In August last year, Japan has gone to unilateral action by selling in the market 4.5 trillion yen. The measure stopped strengthening, but couldn’t deploy the trend. In addition, foreign exchange intervention has been criticized by the Ministry of finance USA.

Source: Economics News