TOKYO (Reuters) – Japanese Finance Minister Katsunobu Kato reiterated on Tuesday that authorities would be vigilant against currency movements, including those triggered by speculators.
“We will continue to closely monitor currency movements, including those driven by speculators, with greater vigilance,” Kato told a regular news conference.
The yen is at a three-month low as the loss of Japan’s ruling bloc’s parliamentary majority raised expectations that political turmoil could make it harder for the Bank of Japan to wean the economy away from decades of monetary stimulus.
Later on Tuesday, Japanese Economy Minister Ryosei Akazawa told a separate conference that a feeble yen could affect the economy in a variety of ways.
A feeble yen “could raise prices through higher import costs, and if wages do not rise as much, this will reduce real household incomes, worsen consumer sentiment and could result in lower private consumption,” he said.
The election results also raised the prospects that the novel government would have to seek support from smaller opposition parties and enhance spending to win public support.
“We plan to draw up a significant economic package and additional budget, including policies beyond party lines,” Kato said.
