Japan Government to Respond Firmly to Excessive FX Movements, Top Currency Official Says

By Chieko Tsuneoka

TOKYO-Japan's top currency official said the weak yen was hurting vulnerable people by raising the price of imported goods such as food, adding that the government would respond firmly to excessive movements in the currency market.

Masato Kanda, vice minister of finance, spoke Tuesday after the yen weakened to a multidecade low of around 160 to the dollar on Monday. Japan intervened Monday to prop up the yen, people familiar with the matter said.

Kanda declined to comment on whether the government intervened. He said it was the government's job to respond firmly to excessive movements in the currency market driven by speculators because these movements exerted a negative effect on the economy.

On Tuesday morning in Tokyo the yen was trading at slightly more than 156 to the dollar.

Kanda observed that a principal cause of inflation in Japan recently is the higher price of imported goods such as food, and he said everyday items cost a lot more at the supermarket these days.

"Because these are daily necessities, the effects get larger for the most vulnerable people," he said, adding that the higher prices could undercut the positive effects of wage increases many Japanese workers have received recently.

Write to Chieko Tsuneoka at chieko.tsuneoka@wsj.com

(END) Dow Jones Newswires

April 29, 2024 20:30 ET (00:30 GMT)

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