TOKYO (Reuters) - Japanese Finance Minister Jun Azumi said on Thursday a rise in the yen and falls in Tokyo share prices do not reflect economic fundamentals, and he is closely watching for excessive moves in the currency market.
He told reporters: “They do not reflect Japanese economic fundamentals at all.”
Asked about the yen’s rise, he said: “It’s a little speculative, and I will keep close watch to see if speculators’ moves become one-sided.”
The dollar fell to a 3-1/2 month low below 78.86 yen as investors favored the yen, the currency of the world’s largest creditor nation despite a mountain of debt.
Japan’s Nikkei share average fell sharply in early trade, with exporters hurt by the yen’s strength and risk aversion heightened after Spain and Italy appeared increasingly unable to finance their own debt.
Reporting by Tetsushi Kajimoto; Editing by Michael Watson