Japan's Suzuki Keeps Traders Guessing Whether or Not Intervened

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(Bloomberg) -- Japan's finance minister declined to confirm whether Japan stepped into the market to support the yen with intervention earlier this week, keeping traders guessing.

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"I'm not commenting on it," Finance Minister Shunichi Suzuki said in response to a question about whether Japan intervened earlier this week. Suzuki was speaking at a press conference in Tbilisi, Georgia, where he attended a series of international gatherings including the Asian Development Bank's annual meeting.

"The government may need to conduct smoothing operations if there are excessive currency moves," said Suzuki. He also reiterated a standard refrain that currencies should move stably and reflect economic fundamentals, as excessive volatility reduces predictability for households and businesses.

Suzuki's comments came days after Japanese authorities apparently entered the market to support the yen on two occasions this week. One instance came after the yen weakened beyond 160 to the dollar for the first time in 34 years at the start of the week.

Another sharp surge was observed early Thursday, after the Federal Reserve's stand-pat decision and Fed Chair Jerome Powell's remarks indicating that the central bank was unlikely to cut interest rates any time soon.

Bloomberg analysis of the Bank of Japan's current account data suggests that Japan may have spent around ¥9 trillion ($58.9 billion) to prop up the yen during the week. Japan will release official data at the end of May that will confirm the precise figure.

Read more: Japan Likely Spent About $23 Billion in Latest Yen Intervention

The yen extended its advance on Friday after a weaker-than-expected US jobs report weighed on the dollar, easing speculation that Japan's authorities may step into the market again to support its currency.

In Georgia, Suzuki is meeting with a number of Asian counterparts, including ASEAN+3 Finance Ministers and central bank leaders. In the joint statement, the countries cited an increase in FX volatility, as well as geopolitical tensions, rising global commodity prices and transportation costs, and slowing growth in major trading partners, as risks for the regional economy.