Japan’s top currency diplomat says monitoring markets with sense of urgency

TOKYO : The Japanese government is closely monitoring stock and currency markets and cooperating with the central bank and other countries, Japan’s top currency diplomat Atsushi Mimura said on Wednesday.
“We’ve been cooperating with other countries, as well as the Bank of Japan and other government agencies,” Mimura said when asked about recent financial market routs at an event hosted by the Nikkei Business magazine.
He also stressed that there have been no major changes in Japan’s economic fundamentals, saying that the Japanese economy is likely to recover modestly.
When asked specifically about current foreign exchange rates, Mimura said he doesn’t have specific levels in mind. “We’re focused on volatility, as excessive volatility raises uncertainties for businesses,” he said.
“It’s desirable for currencies to move in a stable manner reflecting economic fundamentals,” he added.
The yen has faced high volatility in recent weeks.
It fell on Wednesday after an influential Bank of Japan official played down the chances of a near-term rate hike, though it remained far above its 38-year low of 161.96 per dollar hit in early July.