TOKYO, Jan 27 (Reuters) – Currency intervention would be justified if it is aimed at arresting rapid moves in the yen, Yoshinobu Tsutsui, head of Japan’s biggest business lobby Keidanren, said on Tuesday.
“We welcome the fact that the demerits caused by excessive yen weakness have been arrested to some extent,” Tsutsui told a news conference, when asked about the yen’s rebound after the New York Federal Reserve conducted so-called rate checks.
The direction of Japanese and U.S. monetary policy would also affect the yen’s future moves, Tsutsui said.
“We hope the Bank of Japan would respond appropriately on this front,” he said, without elaborating.
“If there are rapid, volatile yen moves, then intervention would be justified,” Tsutsui said.
(Reporting by Leika Kihara; Editing by Jacqueline Wong)
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