By Tetsushi Kajimoto and Leika Kihara
TOKYO (Reuters) – Japanese Finance Minister Shunichi Suzuki stated on Friday after the yen fell to a six-month low in opposition to the greenback that alternate charges must be set by markets primarily based on financial fundamentals.
“Change charges must be decided by markets primarily based on fundamentals,” Suzuki informed a information convention after a daily cupboard assembly.
“We are going to proceed to carefully monitor market actions.”
The Japanese forex earlier weakened previous 140 yen to the greenback, its lowest since late November.
Suzuki’s remarks have been milder than the warnings Japanese authorities usually problem after they view yen strikes as extreme, suggesting Tokyo is taking a cautious strategy to the forex’s newest decline for now.
The yen’s in a single day depreciation was far more subdued than final yr’s fall to almost 152 yen in opposition to the greenback, a 32-year low. This prompted the financial authorities to intervene and warn that they’d take decisive motion to cease the decline.
Whereas a weak yen boosts Japanese exporters, it hurts households and retailers by driving up the price of already excessive commodity imports.
Suzuki declined to remark additional on Friday, saying any “careless feedback” might confuse the forex market.
