Japanese authorities usually intervene verbally in the market to prevent investors from pushing up the yen at a time of growing economic tension overseas. In times of market agitation, the yen and the Swiss Franc are seen as safe havens and are often sought after.
Taro Aso told reporters after the cabinet meeting that he did not comment on the exchange rate level, but pointed out that the yen exchange rate had changed by 2 yen in the past week.
"I think it will have all kinds of effects. At the very least, exchange rate stability is extremely important. We need to pay close attention to the market, "he said.
The yen hit a one-month high against the dollar on Friday after U.S. President Trump broke the cease-fire in the Sino-U.S. trade war and caused a major earthquake in global financial markets.
Trump said he would impose a 10% tariff on $300 billion of Chinese imports to the United States from September 1. It was only after American negotiators ended their negotiations in Shanghai that they returned to the United States.
"This will definitely affect China's economy, and I think it will also have an impact on the global economy in all aspects," Taro Aso said.
"Enterprises are moving factories out of China. The situation has developed not only into a trade war, but also involves many other aspects, so it deserves close attention.
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