Japan stands ready to act if needed to address excessive exchange-rate volatility, Chief Cabinet Secretary Minoru Kihara said on Thursday. He added that the government is prepared to respond to market moves at any time, stating, “We are ready to respond appropriately to currency moves as needed at any time.” He added that officials will continue to closely monitor foreign exchange developments. Kihara noted that while a weaker yen benefits manufacturers by boosting export competitiveness and corporate profits, it also raises import costs, increasing the burden on businesses and households through higher prices. “We need to scrutinise such effects comprehensively,” he said, highlighting the government’s balanced assessment of the currency’s impact on the economy.
