Japanese finance minister frets about ‘hectic’ yen swings

By Tetsushi Kajimoto

TOKYO (Reuters) – Japanese Finance Minister Shunichi Suzuki on Tuesday reiterated the necessity for currencies to maneuver stably reflecting fundamentals, describing latest yen swings as “hectic”, highlighting the complication for authorities in responding to sharp foreign money strikes.

The greenback prolonged its decline on Tuesday, falling to its lowest in two months towards the Japanese foreign money which has till not too long ago been sliding towards the buck. It’s at present fetching 130.66 yen, having rebounded from 24-year lows past 139 yen touched final month.

The sharp foreign money swings may complicate efforts by Japanese policymakers to stem the yen’s weak point, which they fear would enhance residing prices and undermine the phrases of commerce by widening commerce deficits.

However, any sharp yen rebound may damage Japan’s export-led economic system because it makes home shipments of vehicles and electronics items much less price-competitive.

“The yen was weakening however now swinging to rise. The strikes appeared fairly hectic to me,” Suzuki instructed reporters.

Suzuki instructed reporters he would rigorously watch yen strikes and their impression on the economic system whereas coordinating with the Financial institution Of Japan on any agreed actions.

(Reporting by Tetsushi Kajimoto; Modifying by Tom Hogue & Shri Navaratnam)