Japanese Currency Official Warns Against Unstable FX at G-20.

Japanese Vice Finance Minister for International Affairs, Masato Kanda, has warned against currency volatility during a meeting with G-20 counterparts in Sao Paulo. Kanda emphasized the importance of foreign exchange rates reflecting fundamentals and expressed concerns about increased volatility in financial markets. The yen recently reached its year-to-date low against the US dollar, prompting Japanese financial authorities to intervene verbally to stabilize the currency. While a weaker yen has benefited exporters, policymakers are cautious about sharp declines that could disrupt the economy and markets. They are also looking for signs of a virtuous cycle linking wage gains to stable inflation as the Bank of Japan considers ending its negative interest rate policy. [Extracted from the article]