Japan's Ministry of Finance (MOF) said on Monday it did not intervene in the currency market in February, confirming it has stayed out of the market for nearly a year since its aggressive dollar-buying campaign in the 15 months to March 2004.
MOF data showed the ministry stayed away from the market from Jan 28. to Feb. 24, as expected.
Most analysts say the MOF seems not to be overly concerned with foreign exchange levels at the moment, and its return to the market would require sudden currency swings.
The last time the MOF stepped into the market was on March 16 last year, when the dollar fell close to two yen on the day to around 108.60 yen.
Japanese authorities sold a record 20 trillion yen ($190 billion) in intervention in calendar 2003 and another 15 trillion yen in the first three months of 2004, fearing the yen's excessive strength could hurt the economy.
Compared with that period the dollar is trading at much lower levels, and was around 104.35 yen on Monday, but traders say authorities in Tokyo seem unconcerned because the yen has not strengthened against other major currencies.