Japanese monetary authorities made a last-minute decision to advance an emergency meeting on the weak yen to Wednesday (Mar 27) from its original Thursday schedule, aiming to enhance the effectiveness of addressing the sharp decline in the yen.
The meeting, comprising officials from the Ministry of Finance (MOF), Bank of Japan, and Financial Services Agency, is typically convened during periods of market turbulence, serving partly as an indication of authorities’ concern over abrupt currency fluctuations.
Given that the meeting is perceived as a signal of Tokyo’s potential intervention in the currency market, traders remained vigilant for any indications of its recurrence as the yen edged closer to three-decade lows against the dollar.
While the MOF remained silent regarding the meeting’s timing, it carefully assessed the opportune moment. The announcement was made less than an hour before the meeting convened on Wednesday evening.
Originally slated for Thursday, the meeting was rescheduled to Wednesday to amplify its psychological impact on the markets, as disclosed by the source, who requested anonymity due to the sensitivity of the issue.
“It worked,” remarked the source regarding the decision to expedite the meeting. “If we had waited until Thursday, it could have triggered a significant plunge in the yen.”
