Japan on Friday left markets guessing on whether it had intervened to shore up the yen against the U.S. dollar, as senior officials neither confirmed nor denied another foray to reduce excessive volatility.

The officials remained silent after the dollar tumbled more than 4 yen from 161 yen over a short span of time in New York overnight, soon after data showed inflation in the United States had continued to slow, strengthening the market view that the Federal Reserve will cut interest rates in September.

Finance Minister Shunichi Suzuki, in a similar vein, did not confirm a media report that the Bank of Japan had conducted a “rate check” on the euro-yen pair, a practice seen by markets as a harbinger of actual intervention. In a rate check, the Japanese central bank contacts market participants to inquire about foreign exchange rates.

“I do not comment on whether we have intervened or not,” Suzuki told a press conference, a remark echoed by Japan’s top currency diplomat Masato Kanda and government spokesman Yoshimasa Hayashi.

The yen’s precipitous fall has raised concern about the negative impact on the Japanese economy, particularly the inflation of import costs for everything from energy to raw materials at a time when households are struggling with a cost-of-living crisis.

Japanese officials have stressed the need for the yen’s movements to be stable and reflective of economic fundamentals.

Suzuki said foreign exchange levels should be determined by market forces but rapid fluctuations are undesirable. “In particular, we are concerned about one-sided movements,” he added.

The Japanese currency has fallen to an over 37-year low against the dollar near 162, while also hitting its lowest level against the euro since the 1999 launch of the single European currency.

The major factor behind the feeble yen is the wide interest rate differential between Japan on one hand and the United States and Europe on the other.

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