Finance Minister Masajuro Shiokawa said Tuesday that fluctuations on the foreign-exchange market over the last two weeks have been unnatural and he sees the need to issue warnings to the market.
"The foreign-exchange rate has moved by about 5 yen rapidly over the last two weeks, which is a bit unnatural," Shiokawa said. "I think the situation warrants warnings."
The dollar was at 120 yen.20-24 at the close of trading on April 28. On Tuesday, it closed at 117 yen.13-17.
Shiokawa declined to confirm whether Japanese monetary authorities have been stepping into the currency markets to stem the yen's rise. Asked whether intervention was carried out Monday, he said, "I should not say what we did or did not do yesterday or today here."
Shiokawa said he believes the basic position of the U.S. is to maintain a strong dollar policy.
Rate 'not so bad'
LONDON (Kyodo) Bank of Japan Gov. Toshihiko Fukui expressed satisfaction Monday with the yen-dollar rate.
"The exchange rate is not so bad," Fukui told reporters in Basel, Switzerland, where he was attending a meeting of central bank governors at the Bank for International Settlements.
In Tokyo, Totan Research Co., a private think tank, said Monday that the BOJ probably bought between $4 billion and $6 billion in New York last Thursday in a covert spree to devalue the yen.
The dollar briefly dropped to 116.00 yen in New York last Thursday before regaining ground later that day to trade above the 117 yen line in late deals.
The dollar traded at the 116 yen level in New York on Monday.