By Leika Kihara

TOKYO, Reuters – Japan explained the yen’s recent “somewhat quick” declines to G7 counterparts on Thursday. This was in response to Tokyo’s increasing concern over its sharp fall to a 2-decade low against dollar.

Suzuki didn’t comment on the responses of the G7 finance chiefs, stating only that discussions in Washington, D.C., were about the global economy, Russia’s invasion, and not exchange rate moves.

The leaders stated that they are closely watching global financial markets, which have been volatile. However, no mention was made of exchange rates in the statement released after their meeting.

Suzuki claimed that G7 likely held firm to its consensus that currencies should determine rates of currency, that it will work closely together on currency moves and that any excessive or disorderly movements would harm growth.

Suzuki said that “I believe the G7 has maintained its basic view on exchange rates,” he stated at a press conference following the meeting with leaders of finance from Group of Seven countries, which took place on the sidelines of International Monetary Fund gatherings.

When asked about the recent sharp declines in the yen he stated that currency fluctuations were not desirable.

Although the yen suffered slight losses earlier in the day and fell to 128.63 Japanese yen per $1 just after the comments, it was still below the 20-year low at 129.40 on Wednesday.

The dollar has fallen against the currency, and the Bank of Japan (BOJ), which continues to defend its ultra low rate policy, is increasing the chances of aggressive rate increases by the U.S. Federal Reserve.

The yen is expected to continue falling, according to investors. Most bettors believe even an intervention from the government won’t reverse this trend.

Haruhiko Kuroda from BOJ, who was also present, stated that excessive volatility in the exchange rate could impact business activity.

Kuroda stated that it was desirable for exchange rates not to fluctuate, as this would reflect fundamentals. The BOJ will closely monitor how changes in currency could impact Japan’s economy, and its prices.