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Japan must take measures against 'excessive, one-sided' yen movements, says Japan's deputy chief cabinet secretary

Leika Kihara

TOKYO (Reuters) – Japan’s Deputy Chief Cabinet Secretary Seiji Kihara said on Sunday that the Japanese government must take measures as needed to prevent the yen from depreciating excessively, reiterating authorities’ concerns about The currency fell to a 24 year low.

“As for the excessive, one-sided movement of the currency, we will closely monitor developments and must take measures as needed,” Kihara told the TV show when asked about the yen’s recent decline.

Yen recently hit 24 year lows against USD as investors focus on aggressive Fed rate hikes and Bank of Japan (BOJ) pledge to keep rates ultra-low The differences between them widened.

“I will not comment on monetary and interest rate policy because they fall under the jurisdiction of the Bank of Japan,” Kihara said.

Kihara also said that the government will consider measures to further open Japan’s borders to overseas tourists “in the near future”, such as removing the cap on daily arrivals.

“A weak yen is most effective in attracting inbound tourism,” Kihara said, adding that further measures must be taken to attract more foreign tourists into the country.

Japan began to ease border controls on September 7, raising the daily entry limit to 50, 000 and Free entry for group travelers without a guide.

Analysts say lifting the cap and allowing more travelers will be critical to attracting foreign money into Japan and revitalizing its fragile economy.

Regarding how to finance Japan’s expected increase in defense spending, Kihara said it would not rule out issuing government debt.

Our goal is to significantly strengthen Japan’s defense by tapping into various sources of income. We will be flexible in terms of funding and will not rule out any options,” he said.

In a policy roadmap released in June, the government said it hoped “in the next five years”, underscoring Tokyo’s Interest in strengthening defense amid tensions with powerful neighbor China.



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