Japan to respond to yen's 'excessive' moves after plunge: senior official

TOKYO — Japan will take "appropriate steps against excessive moves" in the yen, the country's top currency diplomat said Monday, after the currency fell sharply against the U.S. dollar even in the wake of the Bank of Japan further raising its policy interest rate last week.

"We are concerned about one-sided and rapid moves" of the yen, Atsushi Mimura, vice finance minister for international affairs, told reporters after the yen slid to a one-month low of 157.78 against the dollar in New York on Friday.

Separately, Japan's top government spokesman Minoru Kihara echoed the sentiment, saying on Monday, "It is important for currencies to move in a stable manner reflecting (economic) fundamentals."

Kihara, the chief cabinet secretary, told a news conference the government would respond to foreign exchange developments, including those driven by "speculators."

Their remarks followed similar warnings issued by Finance Minister Satsuki Katayama on Friday, which some market participants viewed as jawboning to stem the yen's slide.

While a weaker yen inflates Japanese exporters' overseas earnings in yen terms, it also drives up import costs for the resource-poor nation, weighing on households through higher living costs.

The yen came under pressure after BOJ Governor Kazuo Ueda refrained from providing clear clues on future interest rate hikes after the central bank raised its policy rate to a 30-year high at around 0.75 percent.

At noon, the U.S. currency fetched 157.42-43 yen compared with 157.70-80 yen in New York and 156.73-75 yen in Tokyo at 5 p.m. Friday.

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