Japan’s finance chief said the yen has been weakening too fast over the past week, the strongest statement yet by one of the nation’s top policy makers as the central bank’s expanded stimulus drives down the exchange rate.
“It’s up to the market to set the currency rate and it’s not something where we intervene,” Finance Minister Taro Aso said today in Tokyo at a regular press conference. “Sudden currency changes aren’t welcome, whether it’s up or down.”
The weakening currency raises the price of imports and
household costs, even as it’s boosting exports. The yen has lost 7 percent in value against the dollar since Oct. 30, the day before the Bank of Japan expanded its unprecedented monetary easing, and is down almost 11 percent this year.
“Over the past week, the yen-dollar rate has weakened too fast -- that’s clear,” Aso said.
The yen strengthened against the dollar after Aso’s to 117.36. It traded at 117.62 at 11:53 a.m. in Tokyo.
“They are alarmed about the excessive yen weakening,” said Koya Miyamae, senior economist at financial market and economic research division of SMBC Nikko Securities Inc. in Tokyo. “It’s not the level, but the speed. It’s hard to act against speed.”
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