TOKYO, March 3 (Reuters) – Japanese authorities have been in close contact with overseas financial officials and are closely monitoring financial markets with an “extremely strong sense of urgency” amid market volatility caused by the Middle East conflict, Finance Minister Satsuki Katayama said on Tuesday.
“We are watching the situation with an extremely high level of vigilance,” she told reporters, adding that Japan had a common understanding agreed with the United States last year.
“That naturally includes the possibility of (currency) intervention. We have said this before, but we will respond with an even greater sense of urgency.”
The yen fell further against the dollar overnight and was trading around 157.3 yen early Tuesday as concerns about higher oil prices dented the currencies of countries most exposed to energy shortages. The dollar also benefited from a safe-haven bid on concerns about conflict in the Middle East widening.
Touching on such safe-haven buying, Katayama said: “Whether or not such developments occur, given the current situation, it ultimately comes down to maintaining close communication with my counterparts in other countries… carefully assessing the situation, and taking the necessary measures.”
(Reporting by Makiko YamazakiWriting by Chang-Ran Kim)
