Japan Finance Chief Concerned over Yen’s Rapid Fall

Jiji Press

14:42 JST, September 2, 2022

Tokyo (Jiji Press)—Japanese Finance Minister Shunichi Suzuki expressed concern Friday over the yen’s recent rapid fall on the foreign exchange market.

“I have the impression that recent foreign exchange rate movements are somewhat rapid,” Suzuki told a press conference. “We will respond appropriately when needed.”

After hitting 24-year highs above ¥140 in New York on Thursday, the dollar is trading above that mark also in Tokyo on Friday. At noon, the greenback stood at ¥140.13-14, up from ¥139.27-28 at 5 p.m. Thursday.

The dollar’s upward march reflects growing expectations for a wider gap in U.S. and Japanese interest rates a the U.S. Federal Reserve is expected to continue raising interest rates to tame inflation while the Bank of Japan keeps its ultraeasy monetary policy in place to underpin the Japanese economy.

Suzuki also said that Japan is ready to “communicate closely” with monetary authorities of other countries based on past agreements among the Group of Seven major countries that excess volatility and disorderly movements in exchange rates can have adverse implications for economic and financial stability.

G-7 finance ministers are expected to meet online later Friday for discussions on sanctions against Russia over its invasion of Ukraine.

As to whether he will take up foreign exchange market developments at the virtual meeting, Suzuki said only, “I plan to talk about matters of interest to Japan as needed.”

The G-7 groups Britain, Canada, France, Germany, Italy, Japan and the United States plus the European Union.