Forex chief calls yen’s slump unusual

TOKYO: Japan’s top currency official says the recent yen weakness is odd and out of line with current economic fundamentals, reaffirming his commitment to act if needed to prevent excessive swings in the exchange rate.

“I strongly feel the recent sharp depreciation of the yen is unusual, given fundamentals such as the inflation trend and outlook, as well as the direction of monetary policy and yields in Japan and the United States,” says Masato Kanda, vice-finance minister for international affairs, in an interview. “Many people think the yen is now moving in the opposite direction of where it should be going.”