Japan’s top FX diplomat Kanda says watching yen moves carefully

TOKYO : Japan’s top currency diplomat Masato Kanda said on Thursday authorities were watching currency market moves carefully, in the wake of the yen’s rebound from recent weakness.

“There is a view (in the market) that speculative yen short positions are being unwound rapidly,” Kanda told reporters.

Kanda, who oversees Japan’s currency policy as vice finance minister for international affairs, also said there was a strong market view that Japan’s deflationary mindset was starting to change, as companies hike prices and wages. The outlook for inflation overseas, such as in the United States, was also drawing attention, he said.