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Japan's Aso warns against yen rise, describes moves as 'rough'

Published 09/02/2016, 01:59
Updated 09/02/2016, 02:10
© Reuters. Japan's Finance Minister Aso delivers his policy speech at the lower house of parliament in Tokyo

By Tetsushi Kajimoto

TOKYO (Reuters) - Japanese Finance Minister Taro Aso warned on Tuesday against a recent rise in the yen, describing the moves as "rough", a sign that policymakers are concerned the currency's gains may offset the positive effects from "Abenomics" stimulus policy.

Japan's top currency diplomat Masatsugu Asakawa echoed the minister's warning, saying that he would closely monitor market moves.

Despite verbal warning shots, the dollar fell below 115 yen on Tuesday morning, a low not seen since November 2014.

The greenback fell to a 15-month low just above 115 yen earlier as a renewed slide in oil prices and doubts about the effectiveness of the Bank of Japan's negative interest-rate policy drove investors back into the safe-haven currency.

"It's clear that recent moves have been rough. I'll keep a close watch on movements in the foreign exchange market," Aso told reporters after a cabinet meeting when asked about the yen's gain overnight.

Japanese Economy Minister Nobuteru Ishihara said a weak yen supports capital expenditure in general but Japan is not in such a situation at present due to external factors.

"There are concerns about the slowdown in emerging markets, particularly China. There are also concerns about the U.S. shale industry," Ishihara told reporters.

© Reuters. Japan's Finance Minister Aso delivers his policy speech at the lower house of parliament in Tokyo

"The yen is being bought because it is considered a relatively safe asset."

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