Japan tells G20 to watch FX moves with high sense of urgency
EWJ•EWJ•EWJ•EWJ•Japan told G20 counterparts that authorities must closely watch exchange-rate moves, Finance Minister Satsuki Katayama said. The yen’s persistent weakness has raised concern over possible intervention and increased import costs, including for fuel.
Katayama said she told G20 finance leaders that authorities must closely watch financial market developments with a high sense of urgency. The leaders reaffirmed their commitment to currency policy, she said.
Japan points to the G20 position that exchange rates should be market-determined and that excessively volatile or disorderly moves are undesirable as grounds for possible intervention. Persistent yen weakness has raised concern among Japanese policymakers by increasing import costs, including for fuel.
Katayama said the G20 meeting produced no joint communiqué or chair’s statement. On rising long-term interest rates, she said she urged countries to pursue fiscal sustainability while using available fiscal scope to support investment in growth areas.
