TOKYO, Sept 17 (Askume) – Japanese Finance Minister Shunehi Suzuki said on Tuesday the government will continue to analyse the impact of the yen’s appreciation on the economy and will take appropriate response measures.
“Our position is that exchange rates should be determined by the market reflecting fundamentals, but rapid fluctuations are not appropriate,” Suzuki said at a regular news conference after a Cabinet meeting.
The dollar fell to a more than a year low against the yen on Monday, slipping below the key 140 level, amid market speculation that the Federal Reserve could cut interest rates by 50 basis points at this week’s policy meeting.
Suzuki said a stronger yen could have both positive and negative effects on the economy through various channels, such as exporters’ overseas sales and import costs for households and businesses.
He said the yen-to-dollar exchange rate for Japanese companies averaged more than 145 yen in the second half of the fiscal year, but their profits and financial situation are generally healthy.
At the same time, we will continue to accurately analyze the impact of exchange rate fluctuations and price changes on the economy and people’s lives and respond appropriately.
