TOKYO (Reuters) -Japan will take appropriate action against excessive currency movement, Minister of Finance Shunichi Suzuki said on Friday, stressing the importance of stability in the foreign exchange market.
Suzuki made the comments in a regular post-cabinet meeting news conference.
Japan will release data later in the global day showing whether it spent money in the foreign exchange market in late April and May.
Traders suspect Japan spent around 9 trillion yen ($57.11 billion) in total on April 29 and May 2 to arrest the yen’s decline to a 34-year low of 160 to the U.S. dollar, private-sector estimates showed.
Suzuki also said higher interest rates could increase the government’s interest payment burden and pressure fiscal policy.
A low interest rate environment allowed for smooth debt management, he said. “Now we need to step up our efforts to increase fiscal health.”
The 10-year Japanese government bond (JGB) yield hit 1.1% this week, its highest since July 2011.
Suzuki repeated the comments later on Friday at an event hosted by Keidanren, Japan’s biggest business lobby. He also said it is important for currencies to move in a stable manner reflecting economic fundamentals, and that the government is closely watching foreign exchange movement and prepared to take all measures.
(Reporting by Makiko Yamazaki and Kentaro Sugiyama; Editing by Jacqueline Wong and Christopher Cushing)
