TOKYO (Reuters) – Japan’s government is closely monitoring stock and currency markets and working with the central bank and other countries, Japanese currency diplomat Atsushi Mimura said on Wednesday.
“We have been working with other countries, as well as the Bank of Japan and other government agencies,” Mimura said when asked about the recent troubles in the financial markets at an event organized by Business magazine.
He also emphasized that there have been no major changes in Japan’s economic fundamentals, and said Japan’s economy is likely to recover modestly.
When asked specifically about current exchange rates, Mimura said he has no specific levels in mind. “We are focused on volatility because excessive volatility creates uncertainties for companies,” he said.
“It is desirable that currencies move in a stable manner, reflecting economic fundamentals,” he added.
The yen has experienced high volatility in recent weeks.
Yields fell on Wednesday after an influential Bank of Japan official downplayed the chances of a near-term rate hike, although rates remained well above a 38-year low of 161.96 per dollar in early July.
