Japan finance min, warns against excessive yen moves

TOKYO, Dec 23 (KUNA) -- Japanese Finance Minister Satsuki Katayama on Tuesday warned against excessive movements in the foreign exchange market, saying the government would take action against speculative-driven yen depreciation. Katayama made the remarks at a press conference after a Cabinet meeting, referring to the yen's recent fall to the upper JPY 157 range against the US dollar last week.
She said the currency moves could not be explained by economic fundamentals alone.
"I do not think the movements reflect economic fundamentals at all. Without speculative activity, the yen would not have fallen to such levels," Katayama said. She added that, based on the understanding shared in the September Japan-US finance ministers' statement, the government would respond to excessive movements, "including speculative ones." Katayama also reiterated that the authorities have a "free hand" in dealing with excessive currency fluctuations, a remark seen as signaling readiness to respond if volatility intensifies.
The yen came under selling pressure despite the Bank of Japan's recent rate hike, as market participants speculated that the pace of further monetary tightening could remain gradual.
Asked about rising long-term interest rates, which have reached levels unseen in about 26 years, Katayama dismissed criticism that the government's fiscal stance was a contributing factor. She said the administration is pursuing "responsible proactive fiscal policy" while maintaining fiscal sustainability. "We believe our policies are being implemented within an orderly framework, and such criticism does not apply," she added. (end) mk.gb