TOKYO (Kyodo) — Japan is closely watching volatile moves in the currency market, Finance Minister Katsunobu Kato said Friday, amid the yen’s recent weakness against the U.S. dollar.
Noting that “one-sided, rapid moves” have been observed recently, Kato said in a news conference, “It is important for currencies to move in a stable manner, reflecting economic fundamentals.”
“We will closely monitor excessive fluctuations and disorderly movements,” Kato added.
His remarks came as the Japanese currency declined to around an eight-month low at the lower 153 level against the U.S. dollar earlier this week, due partly to receding expectations of an imminent interest rate hike by the Bank of Japan.
The yen has recently come under selling pressure after Liberal Democratic Party lawmaker Sanae Takaichi, known as a fiscal dove and proponent of easy monetary policy, was chosen as the party’s leader last weekend, making her likely to become Japan’s next prime minister later this month.
