Japan has expressed concern over sharp fluctuations in its national currency after the yen hit an all-time low against the euro. Japanese Finance Minister Satsuki Katayama stated that the government is paying close attention to excessive and chaotic market movements, including those driven by speculators. On Monday, the yen fell to 180 units per euro in New York trading, its lowest level against the common currency since its introduction in 1999. In Tokyo, the yen traded in the high 170s against the euro. The Japanese currency also continued to depreciate against the US dollar, hitting a nine-month low. Katayama emphasized that it is important for exchange rates to move stably, reflecting economic fundamentals. Similar comments in the past have preceded intervention by Japanese financial authorities to curb sharp yen movements. The selling of yen has intensified amid concerns about Japan's fiscal health, as its new government finalizes a stimulus package amid persistent inflation and stagnant real wages. 'While we continuously monitor the market, we are analyzing the quality and magnitude of the package of measures daily to ensure stability without significantly damaging the credibility of the yen or government bonds,' added Katayama, according to the Nikkei newspaper. The size of the stimulus package is yet to be announced by the Japanese government, which, according to the report, will be in the range of 17 trillion yen (about 94.5 million euros). Concerns about Japan's fiscal health due to increased public spending have caused long-term interest rates to reach 1.75%, their highest level in about 17 and a half years, specifically since June 2008. Katayama's comments came a day after the release of Japan's GDP data, which showed a 0.4% quarterly contraction between July and September, its first decline in six quarters. In this context, the Japanese finance minister stated that 'there are sufficient reasons to implement stimulus and fiscal measures,' in defense of the administration of Prime Minister Sanae Takaichi, who came to power in October.
