Japan s Finance Minister Taro Aso expressed worries about the yen s continual rise, calling it rapid and hinting at the strong currency s impact on exports as Japan struggles through a recession.
The yen s rise came after Japan s economy is bottoming out from its steepest decline, with the government considering restarting the economy while preventing a second wave of coronavirus infections.
The yen steadied at 107 against the dollar under Prime Minister Shinzo Abe s leadership.
The dollar fell to a 4 -month low of 104.52 per yen on Friday as investors feared that the rising COVID-19 cases in the United States could stall its economic recovery.
A government panel said that Japan s economy peaked in October 2018 and then fell into recession. This suggested that the world s third-largest economy was struggling even before the coronavirus outbreak.
Added exports account for no more than 20% of Japan s economy, suggesting that the yen s rise won t have a sudden impact on its economy. However, Aso s warning emphasized the government s efforts to boost external demand.
https://www.umarkets.com/en/news/rapid-rise-of-yen-a-cause-for-worry-says-japan-finance-minister