Japan scrutinising impact of yen fall on its economy, says Finance Minister Suzuki


FILE PHOTO: Japan’s new Finance Minister Shunichi Suzuki wearing a protective mask, amid the coronavirus disease (COVID-19) outbreak, speaks at a news conference in Tokyo, Japan, October 5, 2021. REUTERS/Kim Kyung-Hoon

October 15, 2021

By Tetsushi Kajimoto

TOKYO (Reuters) – Japanese Finance Minister Shunichi Suzuki said on Friday the government will scrutinise the fallout from recent yen declines, which he described as having both pros and cons for the economy.

The dollar rose to a near-three-year high against the yen on Friday at 113.885 yen, partly on expectations inflation risks could prod the U.S. Federal Reserve to raise interest rates sooner than expected.

While a weak yen pushes up import costs for some firms and consumers, it helps exporters, Suzuki told a news conference.

“Stability in currencies is very important,” he said. “We will continue to closely watch currency market moves and their impact on the economy.”

Japan’s wholesale inflation hit a 13-year high in September as rising global commodity prices and a weak yen pushed up import costs, putting pressure on corporate margins and raising the risk of unwanted consumer price hikes.

(Reporting by Tetsushi Kajimoto; Writing by Leika Kihara; Editing by Ritsuko Ando and Muralikumar Anantharaman)

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