Japan's finance minister Suzuki said on Friday that, in his view, the foreign exchange (FX) intervention in July was effective. He noted that the intervention was a response to speculative moves and excessive volatility.
The official added that it is important for currencies to move in a stable manner, reflecting fundamentals, while rapid FX moves are undesirable, stressing that he would conduct another intervention in case of sudden currency movements.
Suzuki also stated it is important for the government to work closely with the Bank of Japan on economic and financial situations.
In addition, the Japanese finance minister acknowledged that he sees lingering deflationary pressures and warned of a risk of deflation returning.