The US dollar rose to the upper JPY 78 range in Tokyo on Wednesday after Japanese Finance Minister Jun Azumi said the Group of Seven (G-7) major industrialized nations have shared the view that excessive volatility and disorderly exchange rate fluctuations will have adverse effects on economic stability.
At 4 p.m. (0700 GMT), the dollar traded at JPY 78.88-92 compared with JPY 78.70-80 in New York and JPY 78.22-24 in Tokyo at 5 p.m. Tuesday.
Azumi made remarks after finance ministers and central bank governors from Japan, Britain, Canada, France, Germany and the US held an emergency teleconference Tuesday night, in which he voiced concern over the yen's rapid rise against the dollar and other major currencies since last week.
"I told G-7 colleagues that excess volatility and disorderly moves in currency rates hurt economic and financial stability. I believe they had no objection to this," Azumi told reporters. The yen's strength hurts Japan's export-led economy and leads stock prices to fall, as it worsens export profitability and affects earnings for exporters by making Japanese products more expensive overseas.
G-7 finance chiefs also agreed to take coordinated action against the European debt crisis and the Spanish financial system, according to the minister. The conference call was held ahead of the Group of 20 (G-20) leader's two-day summit in Mexico from June 18. The G-20 consists of the G-7 nations and emerging heavyweights such as Saudi Arabia, Brazil, China, India, Russia and South Korea.