Japan's top currency diplomat, Masatsugu Asakawa, warned investors on Wednesday against pushing up the yen too fast, saying Tokyo would respond to excessive market moves. Asakawa made the comment to reporters when asked about the dollar's fall to a seven-week low below 100 yen on Tuesday. A rising yen tends to worry Japanese policymakers because it reduces export competitiveness and weighs on corporate earnings, but Japan's options are limited, because other Group of Seven countries frown upon competitive currency devaluation.
"We would have to respond if there are excessive moves. We're closely monitoring (the market)," he said, adding that Japanese authorities were exchanging views on the currency market with Group of Seven partners.