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Japan's top FX diplomat says markets "over-reacting" to weak economic data

Published 20/12/2018, 09:54
© Reuters. Visitor washes Japanese yen banknotes and coins in water to pray for prosperity at Koami shrine in Tokyo's Nihonbashi business district

TOKYO (Reuters) - Japan's top currency diplomat said on Thursday financial markets seemed to be over-reacting to some recent weak economic data, signalling his displeasure over heightening financial market volatility.

"Volatility has heightened in currency and stock markets" since the U.S. Federal Reserve's policy meeting on Wednesday, said Masatsugu Asakawa, vice finance minister for international affairs.

"We will continue to closely watch market moves," he told reporters after a regular meeting with his counterparts from the Bank of Japan and Financial Services Agency to discuss market developments.

© Reuters. Visitor washes Japanese yen banknotes and coins in water to pray for prosperity at Koami shrine in Tokyo's Nihonbashi business district

Asked what steps Japan could take if volatility heightened further, Asakawa said the topic was discussed at Thursday's meeting and that the three "agreed to respond as appropriate."

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