Japan, U.S. Affirm Close Contact over Forex

Politics

Tokyo, March 29 (Jiji Press)--Senior Japanese and U.S. officials at a meeting in Tokyo Tuesday exchanged opinions on recent developments in the foreign exchange market, where the yen is falling sharply.

"We confirmed that Japanese and U.S. currency authorities will communicate closely on foreign exchange issues," Masato Kanda, Japan's vice finance minister for international affairs, told reporters after the meeting with Andy Baukol, visiting acting U.S. undersecretary of treasury.

On Monday, the dollar spurted to exceed 125 yen for the first time in six years and seven months.

"(The yen), in particular, moved in a noticeable way," Kanda said, adding, "We will closely monitor moves on the foreign exchange market, such as the yen's recent depreciation, and their impact on the Japanese economy with a sense of tension."

Kanda and Baukol also agreed to maintain past agreements by the Group of Seven major countries, including Japan and the United States, and others that excessive volatility and disorderly moves in exchange rates can have adverse implications for economic and financial stability.

[Copyright The Jiji Press, Ltd.]

Jiji Press