Japan warns against rapid rise in yen, monitors movements – Gulf Today

Japan warns against rapid rise in yen, monitors movements – Gulf Today

Japan warns against rapid rise in yen, monitors movements

3 hours ago

Pedestrians walk past a board displaying share prices in Tokyo on Friday. Agence France-Presse

Japanese Finance Minister Taro Aso described the yen's recent rise as "rapid“ on Friday, signalling concern that a strong currency could add pain to an export-led economy already in recession because of the novel coronavirus.

The yen's recent appreciation comes as the world's third-largest economy has been bottoming out from its deepest postwar slump, with authorities juggling a restart of economic activity with efforts to prevent a second wave of coronavirus infections.

The currency had been stable at around 107 yen to the dollar under Prime Minister Shinzo Abe administration, Aso told reporters after a cabinet meeting.

"Stability is important, so I'm closely monitoring it with a sense of urgency.“

The dollar hit a 4-1/2-month low of 104.195 yen on Friday as investors worried that a recovery in the US economy could be stymied by a second wave of coronavirus.

"The government and the Bank of Japan (BOJ) will keep a close watch on underlying market and economic trends and tackle as one as needed,“ Kenji Okamura, vice finance minister for international affairs, told reporters after a routine meeting