Japan’s government must take whatever steps necessary to counter excessive declines in the yen, a senior government official has said.
The comments were made by Seiji Kihara, the deputy chief cabinet secretary of Prime Minister Fumio Kishida’s government, and are the latest to highlight worries about the yen’s slide.
Kihara also said the government is considering relaxing strict border measures to increase numbers of overseas visitors, giving the economy a shot in the arm.
“As for excessive, one-sided currency moves, we will closely watch developments and must take steps as needed,” Kihara said when asked about the yen’s recent falls.
The yen has been in freefall against the dollar as investors focus on the widening divergence between the US Federal Reserve’s aggressive interest rate hikes and the Bank of Japan’s (BOJ) pledge to maintain ultra-low rates.
“I won’t comment on monetary and interest-rate policy, as they fall under the jurisdiction of the BOJ,” Kihara said.
The government is considering removing a cap on the number of international visitors to Japan by October, the Nikkei newspaper reported on Sunday. The government would also remove current restrictions on visitors who are not on package tours, the report said.
“A weak yen is most effective in attracting inbound tourism,” Kihara said, adding that further steps must be taken to draw in more foreign tourists into the country.
Japan eased border controls from September 7th, increasing the number of permitted daily entries to 50,000 and relaxing other entry requirements.