Japan top currency diplomat Kanda: Recent yen moves are not reflecting fundamentals

Japan's top currency diplomat, Masatsugu Asakawa, said on Tuesday that recent yen moves do not reflect the country's economic fundamentals, signaling Tokyo's readiness to intervene in the currency market if necessary.

Asakawa, the vice finance minister for international affairs, told reporters that Japan would take "appropriate action" to address speculative and disorderly moves in the currency market.

The comments came after the yen surged to a 17-month high against the dollar earlier this month, raising concerns among Japanese policymakers about the potential impact on the country's export-reliant economy.

The yen's strength has been driven by factors such as global risk aversion and a slowdown in the Chinese economy, rather than Japan's economic fundamentals, Asakawa said.

The remarks suggest that Japanese authorities are closely monitoring the currency market and are prepared to intervene to prevent excessive volatility in the yen's exchange rate.