Japan finance minister warns against excessive yen weakening

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Japan will take appropriate steps should the yen weaken excessively, Finance Minister Shunichi Suzuki said, after the currency plumbed seven-month lows against the dollar

Suzuki warned against investors selling the yen too far as the currency weakened past 145 to the dollar, a level that made speculators wary of potential intervention by Japanese authorities.

A weak yen has both positive and negative effects on the economy, depending for example on the export or import sectors. Generally, yen weakening pushes up import costs of food and energy for resource-poor Japan, which would deal a blow to consumers struggling to make ends meet.

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