The first part of the week was more than optimistic for Bitcoin. However, now it is going through the correction phase.
Japanese cabinet is ready to tame yen volatility
On Tuesday, a Japanese official told that volatility was going up in the foreign exchange market and the Japanese cabinet is geared up towards taking all the necessary steps if the market gets excessively erratic.
As the country’s vice finance minister for international affairs Masatsugu Asakawa pointed out, volatility is going up, while every member of the G20/G7 considers excess volatility as well as disorderly moves to be extremely undesirable for the economy.
The Japanese statesman added that the Japanese government is going to keep close watch on any market moves with a constant readiness to act, while cautiously checking if there’s any speculative bounce.
Talking after a gathering with his rivals from the Bank of Japan as well as Financial Services Agency to negotiate market developments, the statesman told that the Japanese cabinet would take action as appropriate in case volatility goes up.
His remarks actually underscored the Asian country’s fears about the return of a firm national currency. The Japanese cabinet is used to being sensitive about signs of the Japanese yen going up because a strong yen would undermine Japan’s export-led economic recovery.
Meanwhile, the evergreen buck headed south to a four-month minimum of 110 versus its safe-haven Asian counterpart on Tuesday due to the fact Nikkei index slipped more than 5% to a 20-month minimum after a dive in US equities extended against the backdrop of American political turmoil.
Besides this, Asakawa told that financial markets seem to have somewhat overreacted to some dismal economic indicators as well as American political moves over monetary and fiscal policies.
By the way, economic fundamentals in the United States and Japan were still firm and proceeded with their gradual recovery trend, the statesman stressed.
Asakawa pointed out that the Japanese cabinet needs to ensure swift passage of budget bills in the country’s legislative body in 2019 to back the Japanese economy, while the BOJ should keep pursuing its strong monetary easing with the aim of meeting its 2% inflation objective.
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