Japan's Finance Minister Shunichi Suzuki said Monday that some speculative moves are believed to be behind the yen's recent declines. The official emphasised that these moves do not reflect fundamentals when considering domestic and overseas economic and price developments. He also reiterated that rapid FX moves are undesirable.
Suzuki noted that currency dynamics are influenced by various factors, including the Bank of Japan's decision to exit negative interest rates, Japan's current account balance, geopolitical risks, investors' sentiment and speculative trades.
The finance minister pledged to watch currency market developments with a strong sense of urgency and respond appropriately against excessive moves without ruling out any options.