Japan's Finance Minister Shunichi Suzuki asserted on Friday that July's foreign exchange (FX) intervention was successful in addressing excessive market volatility.
Suzuki emphasized that sudden FX movements are undesirable and that currencies should fluctuate in a stable manner, stressing he would intervene again if drastic fluctuation persists. "A weak yen has its pros and cons," he said. He also highlighted ongoing deflationary pressures and the risk of financial instability due to high government debt and potential interest rate increases.
His comments came after the country revealed that annual inflation for July remained at 2.8%.
