Japan's Currency Moves Stir Concerns Amid Speculation

Japan's top currency diplomat, Masato Kanda, expressed concerns about recent exchange rate moves driven by speculation, noting significant impacts on households. Kanda emphasized that these movements were out of line with fundamentals. His comments followed a notable drop in the dollar against the yen after weaker-than-expected U.S. CPI data.

Japan's top currency diplomat, Masato Kanda, voiced concerns on Thursday about recent exchange rate moves being driven by speculative forces and diverging from fundamentals, according to Jiji news agency.

Kanda highlighted that exchange rate fluctuations since the start of the year have been 'very big' and have impacted Japanese households.

The diplomat, who serves as vice finance minister for international affairs, refrained from commenting on potential market interventions by the authorities.

His remarks, the strongest yet from Japanese officials, came after the dollar fell 2.5% against the yen following disappointing U.S. CPI data. Finance ministry officials have not responded to Reuters' request for comments.

Japanese authorities have made it a practice not to confirm whether they have intervened in the currency market.