By Tetsushi Kajimoto

TOKYO (Reuters), -The Japanese Finance Minister Shunichi Suzuki stated on Friday that he closely monitors any currency movements and believes that stability in foreign exchange is important.

Suzuki said to reporters, “I will not comment on currency market but stability is essential above all.”

When asked whether the weakening of the yen had any negative effects on the economy, he replied that “The government will closely monitor currency market movements and their impact upon Japanese economy after that point”.

Suzuki made this comment while the dollar was nearing a five year high against the Japanese yen. The surge in U.S. Treasury yields reflects growing hopes for an increase in Federal Reserve rates by March.

After hitting Tuesday’s peak of 116.355 on Tuesday, the U.S. dollar stood at 115.88yen. This was despite Fed officials’ hawkish remarks and an encouraging U.S. job report. [USD/]

Suzuki had stated that a weaker yen was a good thing for Japanese firms and exporters, however, it could hurt consumers, due to the higher living costs.

When asked about the yen, he’s remained quiet.

Haruhiko Kuroda, Governor of Bank of Japan (BOJ), stated last month that a weaker yen could be hurting households in a greater way than it has been previously, because of an increased reliance on imported raw materials.

According to him, the advantages of weakening the yen are greater than the disadvantages. A decline in the yen makes Japanese products more attractive overseas and increases yen-based profits overseas.

Japanese policymakers are known to shout warnings about unwelcome rises in the yen, which can threaten their third-largest export-dependent economy.