Though deputy chief cabinet secretary Seiji Kihara repeated Tokyo's common refrain that sharp moves in currency rates were undesirable

The greenback hits a 20-year high on the yen and tests a two-year peak on the euro, backed by high Treasury yields and expectation of good economic data; Investors are betting the yen will fall further

The yen has dropped about 10% against the dollar this year and worsened inflationary pressures in Japan amid a spike in commodity and oil costs, and supply snags made worse by war in Ukraine

Prime Minister Fumio Kishida also said the recent rise in domestic inflation was due mostly to the global spike in crude oil and raw material costs, rather than the weak yen

The yen was trading at more than 126 against the dollar at one time, reaching the lowest level since May 2002

The data added to concerns that Japanese firms are holding off on investments amid a profit squeeze from rising energy and raw materials costs

The deficit could reach $130 billion for fiscal 2022 if crude oil bounces back to $130 a barrel and the yen trades at 120 against the dollar

The Bank of Japan must maintain ultra-easy policy for a prolonged period to sustainably hit its 2% inflation target, the fund said in a staff report

Asia’s major stock markets advanced on Tuesday but gains were tempered by concerns over the impact of Covid lockdowns in China’s financial hub

While the BOJ had made no decision yet whether to issue its own digital currency, its governor told parliament it was proceeding with experiments

The benefit from a weak yen comes more through an increase in the value of profits companies earn overseas, rather than a rise in export volume

Data show the Japanese economy grew at a smaller rate than expected in the fourth quarter