Japan to monitor yen fluctuations – FinMin

Japanese government will carefully assess the effects of the yen’s appreciation on the economy and take necessary measures, according to Finance Minister Shunichi Suzuki on Tuesday.

Speaking at a regular post-cabinet meeting news conference, Suzuki reiterated that while currency rates should generally be determined by market forces reflecting economic fundamentals, rapid fluctuations are undesirable.

The US dollar fell below the key 140-yen mark on Monday, hitting a more than one-year low amid speculation that the Federal Reserve may announce a 50-basis-point interest rate cut during its policy meeting this week.

Suzuki also pointed out that the yen’s recent trading levels have been above the 145 yen per dollar average assumed by many Japanese firms for the second half of the fiscal year. Despite this, companies’ earnings and financial conditions have remained largely healthy.

Attribution: Reuters

Subediting: M. S. Salama