TOKYO – Japanese Finance Minister Satsuki Katayama on Tuesday expressed concern about “very one-sided, rapid” foreign exchange movements, as the yen weakened against major currencies amid worries over Japan’s fiscal health.
“The government is closely monitoring excessive fluctuations and disorderly movements in the market, including those driven by speculators, with a heightened sense of urgency,” Katayama said at a news conference.
The finance chief also said it is important for currencies to move in a stable manner, reflecting economic fundamentals.
Overnight in New York, the Japanese currency fell against the euro to the 180 range, its weakest level since the European single currency was introduced in 1999.
Against the U.S. dollar, the yen also slid to a fresh nine-month low in the lower 155 range.
Yen-selling intensified amid views that Japan’s already-tattered finances could deteriorate further, as Prime Minister Sanae Takaichi’s government prepares a large-scale economic package exceeding 17 trillion yen ($110 billion) under her “responsible and proactive” fiscal expansion agenda.
The yen has already been under pressure partly due to market expectations that the Bank of Japan will find it difficult to resume near-term interest rate hikes under Takaichi’s administration, a proponent of monetary easing.