Tetsushi and Leika Kajimoto

TOKYO (Reuters), – Japan’s finance minister Shunichi Suzuki announced Tuesday, in response to the fall of the yen against the dollar that Japan will be closely monitoring exchange rates.

While a weaker yen will boost exporters’ profits but do a disservice to consumers and retailers as it increases the cost of imported food, fuel, or other products, it could also hurt households.

It is vital that the exchange rate stability be maintained. “We’ll closely monitor currency market and impact on Japanese economy,” Suzuki stated at a news conference when Suzuki was asked about softening the yen.

The dollar/yen level was not directly discussed by him. He also did not comment on whether or not a weaker yen would be a problem for Japan’s economy.

Dollar hit an all-time high of more than 118yen in five years. This was due to bets by the Bank of Japan that it would keep its dovish policy despite increasing inflationary pressures.

According to Seichi Shimzu, head of central bank’s monetary affairs division, on Tuesday, the BOJ will continue its huge monetary stimulus because it may take some time before inflation reaches its target of 2%.