Written by Makiko Yamazaki and Satoshi Sugiyama
TOKYO (Reuters) – Japanese Finance Minister Shunichi Suzuki said on Monday authorities were closely monitoring exchange rate movements after the Japanese currency fell to its biggest one-day drop since 1987.
He said it was desirable for foreign exchange rates to move stably and reflect economic fundamentals.
Speaking to reporters, he declined to comment on whether current yen levels were considered excessive.
“It is difficult to pinpoint the reason behind the stocks’ decline,” Suzuki told reporters, adding that the government was cooperating with the Bank of Japan and watching markets closely with a sense of urgency.
Japan’s Nikkei average fell 13 percent to a seven-month low on Monday and the safe-haven yen rose as investors fled risk on fears of a U.S. recession.
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