TOKYO (Reuters) – Japanese Prime Minister Fumio Kishida said on Thursday that Japan will closely monitor currency market movements and act decisively against excessive volatility, suggesting the government may act again after buying the yen for the first time since 1998.
Japan intervened in the foreign exchange market earlier to buy the yen in an attempt to support the volatile currency after the Bank of Japan stuck to ultra-low interest rates, increasing pressure on the currency against the dollar.
“The government will continue to closely monitor market movements with a great sense of urgency, and will take necessary steps decisively in response to excessive volatility,” Kishida said at a news conference in New York.
Kishida, who is visiting the United States for the United Nations General Assembly, said Japan will ease its border controls from October 11, eliminating the maximum number of arrivals to Japan and allowing visa-free travel, including for individuals.
The prime minister also said he would instruct his ministers on September 30 on compiling a new stimulus package.
“When assembled in October, we will quickly move to execution,” he said.