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