TOKYO, Jan. 4 (Xinhua) -- The Japanese government expressed its strong concern on Friday over the high volatility in the currency market which saw the yen rocket to a 10-month high versus the U.S. dollar.
"We saw very high volatility in the currency market, and we must acknowledge this with strong concern," Masatsugu Asakawa, vice minister of finance for international affairs, was quoted as saying.
"We will continue to stringently monitor financial markets for such speculative moves," Asakawa added.
His remarks followed an emergency meeting held with Japan's Financial Services Agency and Bank of Japan (BOJ) officials.
On Thursday, the Japanese currency briefly spiked to its highest level since March 2018 against the U.S. dollar at 104.70 yen. Markets here at the time were closed for holidays.
A strong yen versus other major currencies, particularly the U.S. dollar, negatively impacts Japan's exporters, a mainstay of the nation's economy, as they rely on a weaker yen to augment profits when they are repatriated from overseas as well as to enhance their competitiveness in overseas markets.
The emergency meeting held with the Financial Services Agency and Japan's central bank on Friday marked the third such meeting since since Dec. 20.
The meetings have been a result of unusually high volatility in financial markets, with Tokyo stocks tumbling and long-term interest rates dropping into negative territory also factoring into the government's strong concern of late.
"Excessive volatility isn't conducive to economic and financial stability, as the Group of Seven and the Group of 20 have affirmed. We have repeatedly confirmed that our currency authorities will cooperate as necessary, and Japan will act in line with that understanding," said Asakawa, Japan's top currency diplomat.
