TOKYO, April 1 - Finance Minister Masajuro Shiokawa said on Tuesday that Japan was ready to act to prevent rapid movements in foreign exchange rates. "The market has been moving again yesterday and today. These moves are speculative and undesirable," he told a news conference. The ministry confirmed on Monday that Japanese authorities had conducted yen-selling intervention worth 1.2 trillion yen ($10.16 billion) in the past month in a bid to ease volatility in currency markets caused by geopolitical concerns. Japanese authorities have been selling yen through covert intervention since the beginning of this year. Officials worry that a strong yen hurts exports and worsens deflation, which has been hobbling the economy for over three years. Shiokawa said intervention was intended as a warning, and not aimed at maintaining specific levels.
The dollar dipped to a two-week low of 117.83 yen overnight, having risen briefly on Monday to a high of 120.20 yen during Tokyo trading hours. On Tuesday morning in Tokyo it was around 118.10 yen.//