### Japan’s Finance Minister on Yen’s Sharp Decline Japan’s Finance Minister stated on Sunday that the recent sharp weakening of the yen and volatile currency market movements are not driven by economic fundamentals. He emphasized that the government is closely monitoring the situation and stands ready to respond if necessary. > “Recent moves in the foreign exchange market have been extremely erratic,” the minister said. “It is clear that these fluctuations do not reflect the actual state of Japan’s economy.” ### Government’s Stance and Market Outlook The official reiterated that Japan intends to act decisively against excessive volatility, suggesting potential intervention if speculative trading continues to distort the yen’s value. Financial authorities are believed to be in close communication with global counterparts to maintain stability in currency markets. Economists note that despite Japan’s moderate inflation and steady growth, the yen has faced strong downward pressure due to interest rate differentials with the United States and other major economies. > “Our approach remains consistent — we will carefully review market trends and respond appropriately if necessary,” the minister added. ### Economic Context The yen’s rapid depreciation has raised concern among importers and consumers, as it increases the cost of imported goods and energy. Meanwhile, exporters benefit from the weaker currency, which boosts overseas earnings. Analysts warn that further declines could heighten inflationary risks and complicate the Bank of Japan’s ongoing monetary policy adjustments. > “Exchange rates should reflect economic fundamentals,” the Finance Minister stressed, reinforcing the view that recent changes appear speculative rather than structural. *** **Author’s Summary:** Japan’s finance minister warned that the yen’s steep drop stems from market speculation, not fundamentals, and pledged vigilance to curb excessive volatility.

more

Reuters on MSN — 2025-11-30