World Economy

Japan Warns of Yen’s Rapid Rise

Japan Warns of Yen’s  Rapid RiseJapan Warns of Yen’s  Rapid Rise

Japan’s finance minister on Tuesday warned over the yen’s rapid rise after the dollar plunged to a seven-month low against the unit on fears over China’s economy and global growth, AFP reported. In Tokyo, the greenback fetched 119.94 yen following the comments, from 118.51 yen in New York where it fell at one stage to 116.18 yen, its lowest level since February. The dollar was above 124 yen last week. The euro bought 138.44 yen from 137.55 yen in US trading, while it slipped to $1.1541 against $1.1606. Japan’s Finance Minister Taro Aso on Tuesday cautioned over the yen’s rapid rise which he described as “rough”, and said Tokyo was in frequent contact with other G7 nations about the market swings. A rapid rise in the yen hurts major Japanese exporters such as Toyota and Sony by denting their competitiveness overseas and shrinking the value of repatriated profits. Economy Minister Akira Amari called for a “cool-headed approach”, but added that the shift into the yen “reflected the strength of Japan’s economic fundamentals”.