Rapid Forex Fluctuations "Undesirable": Japan Govt Spokesman

Politics

Tokyo, Sept. 2 (Jiji Press)--Rapid fluctuations in foreign exchange rates are "undesirable," Japanese Chief Cabinet Secretary Hirokazu Matsuno said Friday, in connection with the yen's fall to its lowest levels in 24 years past 140 against the dollar.

"It's important that the currency market moves stably in accordance with fundamentals, and rapid exchange rate fluctuations are undesirable," he told a press conference.

"Volatility in the exchange market has been increasing recently, so the government will keep monitoring currency market developments closely while maintaining a high level of tension," the top government spokesman added.

The dollar moved around 140 yen in Tokyo Friday morning following its rise above that mark in overseas markets Thursday, briefly trading around 140.27 yen, the highest levels since August 1998. At noon, the dollar stood at 140.13-14 yen, up from 139.27-28 yen at 5 p.m. Thursday.

The dollar's sharp ascent came on the back of growing expectations for a wider gap between Japanese and U.S. interest rates.

[Copyright The Jiji Press, Ltd.]

Jiji Press