Japan should not hesitate to intervene in currency markets if the yen spikes rapidly, even if US President-elect Donald Trump opposes such a move, the country's former top currency diplomat Hiroshi Watanabe said on Thursday. Watanabe made the remark a day after the Republican nominee's surprise win in the presidential election roiled global markets.
The yen surged more than 3 percent on Wednesday as Trump swept to victory over heavily favoured rival Hillary Clinton, prompting verbal warnings from Japanese policymakers who are concerned that a strong currency would derail the fragile export-reliant economy. Markets were calmer on Thursday, with the dollar reversing earlier selling against the safe-haven yen to touch a high of 105.87 yen, its highest since July 27.
"If the yen spikes by 3 yen or more, Japan should not hesitate to intervene" regardless of US concerns about such action, Watanabe told Reuters in an interview, adding that he told this recently to Finance Minister Taro Aso and current top financial diplomat Masatsugu Asakawa.
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