© Reuters. Japanese Finance Minister Shunichi Suzuki speaks during a presiding press conference at the G7 Finance Ministers and Central Bank Governors meeting at Toki Messe in Niigata, Japan, Saturday, May 13, 2023. Shuji Kajiyama / Pool via RE
By Kevin Buckland
TOKYO (Reuters) – Japanese Finance Minister Shunichi Suzuki said on Sunday there were no “discussions” about exchange rates at a meeting of Group of Seven finance ministers and central bank chiefs.
Suzuki was speaking after a meeting in India of the Group of Seven – the United States, Japan, Germany, Britain, France, Italy and Canada.
The yen fell by 145 yen per dollar at the end of last month, a level that last fall prompted the Finance Ministry to intervene in the market to support the currency. However, the yen has rebounded strongly this month to around 138 yen per dollar.
A weaker yen can boost earnings for Japanese exporters, but it boosts the price of energy and other imports in yen for businesses and consumers.
Speaking at a press conference, Suzuki also reaffirmed Japan’s “unwavering support” for Ukraine, Kyodo reported.
Japan’s news agency reported that Bank of Japan Governor Kazuo Ueda said there was a view that “there is strong uncertainty in the global economy.”
Ueda cited uncertainty about the global economy as a reason for maintaining Japan’s ultra-easy monetary policy, even as inflation exceeded the central bank’s target.
The Bank of Japan’s easy monetary policy has been a major driver of the yen’s weakness, as it contrasts with the tightening in the United States, Europe, and most other advanced economies.