Japanese PM Says Government Must Respond Firmly to Add Stability After Brexit

Prime Minister Shinzo Abe said Friday financial markets need to be stabilized as the yen surged against other currencies and Japanese stocks plunged after Britain voted to leave the European Union in an historic referendum.

“We must respond firmly,” Abe said in a speech in Iwate Prefecture in northeastern Japan. “The foreign exchange market and other financial markets need to be stabilized.”

Finance Minister Taro Aso told reporters, “We are very concerned over the risks to the global economy, and financial and exchange markets.”

He added the government will monitor the situation “more than ever” and steadily take steps when needed so volatile movements do not continue.

Aso refrained from commenting on possible market intervention to halt the yen’s rise after the dollar bounced back above the 100 yen level. The U.S. dollar had dropped below the 100 yen line for the first time since November 2013.

via Mainichi

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza