Japan’s Asakawa: Yen movements are driven largely by capital flows

Dhwani Mehta FXStreet

Japan's 'top financial diplomat' Masatsugu Asakawa from the Ministry of Finance (MOF) was reported by Reuters last minutes, as saying:

Global imbalances will be discussed as a priority at next year's G20 meeting.

Addressing global imbalances fits extremely well with the core mandate of G20.

We should recognize there is a large room for cooperation between countries with current account surplus, deficit to address global imbalances.

Gone are the days when currency rates were driven mostly by changes in the current account balance.

In today's world, exchange-rate movements are driven largely by capital flows.

Japan exporters don't necessarily lower export retail prices now even when the Yen depreciates.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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