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Japan Finance Ministry on Alert as Weak Yen Causes Concern

Japanese households are being hit hard by rising import costs though the yen’s depreciation has boosted exporters’ profits and seen stocks soar

Japanese officials are estimated to have spent about $6bn on Monday propping up the currency.
Japanese 10,000 yen notes are seen lined up in Tokyo, in this February 28, 2013 image. File photo: Shohei Miyano, Reuters.


Japan’s Finance Minister Shunichi Suzuki has admitted he is keeping a close eye on foreign exchange markets and the weak yen’s “undesirable” exchange rate.

Suzuki told reporters: “Sharp moves are undesirable, currencies should move stably reflecting fundamentals. With that in mind, we will continue to keep firm watch on market moves.”

The latest verbal warning to the markets comes amid policymakers’ concerns that Japanese households are suffering as a result of the weak yen driving up import costs.


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On the flip side, the yen’s depreciation has helped boost exporters’ profits, pushing up stock prices to a 33-year high.

The yen was largely steady on Friday at 143.05 per dollar, languishing near an over seven-month low of 143.23 hit in the previous session.

The yen has come under renewed pressure after the Bank of Japan (BOJ) maintained an ultra-dovish stance at its meeting last week.

Data out on Friday showed that Japan’s core consumer inflation topped forecasts in May and an index excluding fuel costs rose at the fastest annual pace in 42 years, putting pressure on the BOJ to phase out its massive stimulus.


  • Reuters with additional editing by Sean O’Meara


Read more:

Yen Shoots up as Ueda Nominated as New Bank of Japan Chief

Japan Admits Spending $48 Billion Rescuing Plummeting Yen

Investors Shift Focus to Yen After BOJ Defies Expectations



Sean O'Meara

Sean O'Meara is an Editor at Asia Financial. He has been a newspaper man for more than 30 years, working at local, regional and national titles in the UK as a writer, sub-editor, page designer and print editor. A football, cricket and rugby fan, he has a particular interest in sports finance.


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