WASHINGTON: Japanese Finance Minister Katsunobu Kato issued a warning on Wednesday against currency speculation, expressing concern over "one-sided, rapid" moves in the market that have been driving down the yen's value.
"It's important for currency rates to move stably. We are watching exchange-rate moves with heightened vigilance, including for any speculative moves," Kato told reporters after attending the first-day session of the Group of 20 finance leaders' gathering.
Kato mentioned that the G20 finance leaders did not discuss currency rate movements at Wednesday's meeting and are unlikely to do so on Thursday.
The dollar rose above 153 yen for the first time in nearly three months on Wednesday, as solid US data reduced market expectations of aggressive interest rate cuts by the Federal Reserve.
Japan last intervened in the currency market in late July to support the yen after it fell to a 38-year low below 161 per dollar.
While a weak yen benefits exporters, it has become a concern for policymakers, as it raises the cost of importing raw materials, impacting households and retailers. The Bank of Japan's ultra-loose monetary policy and signals from Governor Kazuo Ueda that interest rates will remain near-zero are also seen by markets as contributing factors to the yen's weakness. — Reuters
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