Sanjaya Panth, Deputy Director of the IMF's Asia and Pacific Department, stated that the recent declines in the Japanese yen are driven by fundamental factors and that there are no factors that would necessitate intervention in the foreign exchange market by authorities.
The International Monetary Fund (IMF) said it sees no factors that would compel Japan to intervene in the foreign exchange market to support the yen.
Speaking to reporters at the IMF and World Bank annual meetings held in Marrakech, Morocco, on Saturday, IMF Asia and Pacific Department Deputy Director Sanjaya Panth said, "Our sense on the yen is that the exchange rate is largely driven by fundamentals. As long as interest rate differentials persist, the yen will remain under pressure."
Panth also stated that the IMF does not see the fundamental criteria that would support the need for intervention, such as market dysfunction, risks to financial stability, or the de-anchoring of inflation expectations.
Panth added that there are more upside risks than downside risks to Japan's near-term inflation outlook, as the economy is operating near full capacity and price increases are increasingly driven by strong demand.
News Source: 12punto
