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Japan Finance Minister says will work with BOJ on possible steps to curb yen slump -Breaking


© Reuters. FILE PHOTO – This illustration photograph was taken June 1, 2017, and shows a Japan Yuen note. REUTERS/Thomas White/Illustration/

By Tetsushi Kajimoto

TOKYO (Reuters), -Japanese Finance minister Shunichi Suzuki reiterated Tuesday that he was concerned about the rapid yen’s weakening. The government said it will work with Bank of Japan to coordinate the appropriate actions as the currency plunged to a low of 24 years to the dollar.

Suzuki explained to journalists that currency movements should be consistent with economic fundamentals. Affective volatility and uncoordinated moves could cause economic and financial instability.

Japan will continue to communicate closely with G7 advance currency nations, based on their mutual agreement regarding currencies.

Suzuki stated that “a rapid weakening of the yen has been observed in exchange markets recently, and this is concerning.” We will closely monitor currency market movements and their effect on prices and the economy with an even greater urgency.

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Japan’s central bank and government issued rare joint statements on Friday. They expressed concern over the sharp fall in the yen and investors were wary of currency intervention.

After trading at 135.22 Monday, the yen traded as low as 134.00 on Monday. The yen is currently down 14% against the dollar.