Finance Minister Sadakazu Tanigaki said Tuesday “excessive volatility and disorderly movements” in exchange rates are undesirable for economic growth, in reference to the dollar’s sharp fall against the yen.
Tanigaki made the remark after the dollar fell by more than 3 yen in a week — from 114.03 yen on May 2 to 110.99 yen on Monday, its lowest level since September.
While declining comment on daily market movements, Tanigaki claimed Japan’s currency policy is in sync with the Group of Seven financial leaders’ stance that exchange rates should reflect economic fundamentals.
“In this sense, we continue to monitor exchange markets closely,” he said at a news conference.
The dollar’s weakness stems primarily from growing speculation that the U.S. Federal Reserve may take a break from its successive rounds of credit-tightening after an anticipated rate hike Wednesday, according to currency dealers.