Japan’s finance minister says he will ‘firmly’ monitor exchange rate movements as yen weakens

Finance


TOKYO (Reuters) – Finance Minister Shunichi Suzuki said on Friday that he was watching foreign exchange markets “firmly” and did not want a sharp move in the yen’s exchange rate when asked about the recent weakness in the yen. .

“Exchange rates should be set by the market to reflect fundamentals,” Suzuki told reporters at the foreign ministry, adding that he would not comment on exchange rates.

“Rapid movements are not desirable and the currency should move stably to reflect fundamentals. With that in mind, we will continue to monitor market movements closely.”

It was the latest verbal warning to the market as policymakers worry that Japanese households are in trouble as a result of higher import costs due to a weaker yen.

On the other hand, a weaker yen boosted profits for exporters and pushed stocks to their highest level in 33 years.

The yen was almost stable at 143.05 yen to the dollar on Friday, slumping around 143.23 yen, a seven-month low in previous trading.

The yen came under renewed pressure after the Bank of Japan (BOJ) maintained an ultra-dovish stance at its meeting last week.

Data released on Friday showed Japan’s core consumer inflation beat expectations in May, with the index excluding fuel prices rising at its fastest annual pace in 42 years, prompting the BOJ to impose a massive stimulus package. pressure to phase it out.

Reporter: Tetsushi Kajimoto Additional report by Mr. Kantaro Komiya.Editing: Simon Cameron Moore

Our standards: Thomson Reuters Trust Principles.



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