Japan’s Suzuki says FX rates should be set by markets

TOKYO (Reuters) – Japanese Finance Minister Shunichi Suzuki said on Friday currency rates should be set by markets based on economic fundamentals, in the wake of the yen’s renewed declines against the dollar.

“We will continue to watch market moves closely,” Suzuki told a news conference after a regular cabinet meeting.

The remarks are softer than the verbal warnings Japanese authorities typically issue when they see yen moves as excessive, suggesting that Tokyo is taking the latest slide in the currency in its stride, at least for now.

While a weak yen gives Japan’s exporters a boost, it hurts households and retailers by pushing up the cost of already high raw material imports.