Japan Finance Minister says watching rising FX volatility with "sense of urgency"
Japanese Finance Minister Shunichi Suzuki attends the G20 Finance Ministers Meeting in Nusa Dua, Bali, Indonesia July 16, 2022. Sonny Tumbelaka/Pool via REUTERS
TOKYO :Japanese Finance Minister Shunichi Suzuki said on Tuesday sharp yen moves were "undesirable" and he was watching rising volatility in the currency market with a "great sense of urgency".
The yen has fallen more than 20 per cent since the start of this year, driven by monetary policy divergence between Japan and the United States. The Federal Reserve is expected to continue with rate hikes for the time being while the Bank of Japan has vowed to stick to powerful monetary stimulus to back a fragile economy.
"It's important for currencies to move stably, reflecting economic fundamentals," Suzuki told reporters at the finance ministry.
When pressed for comment on the impact of a weak yen on the Japanese economy, Suzuki said "a weak yen has both merit and demerit, but sharp moves are undesirable."
Suzuki previously said he was "concerned" when the yen fell beyond 139 to the dollar in July.
