TOKYO – Japanese Finance Minister Shunichi Suzuki said on Friday that recent drops in the yen were “sharp” and agreed with his US counterpart to communicate closely on currency moves.
The yen has plunged to two-decade lows against the dollar, with the central bank continuing to defend its ultra-low rate policy in contrast with heightening chances of aggressive rate hikes by the US Federal Reserve.
Suzuki said he did not directly voice concern over yen moves in the meeting with US Treasury Secretary Janet Yellen, but that he referred to the currency’s rapid moves as part of his briefing on the state of Japan’s economy.
“We confirmed that currency authorities of both countries will communicate closely, aligning with the exchange-rate principles agreed among the G7 and G20 members,” Suzuki told reporters after the meeting with Yellen in Washington D.C. on the sidelines of the International Monetary Fund gatherings according to Reuters.
He declined to comment, when asked about the chance of Japan intervening in the currency market to stem further yen falls.
But he stressed Tokyo’s readiness to take action by describing recent yen moves as undesirable.
“The government has said rapid currency moves were undesirable. What we’re seeing now with the yen are rapid moves, so we’ll monitor moves closely with a sense of urgency,” Suzuki said.
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