TOKYO: Japan's top currency diplomat Atsushi Mimura said on Monday that the government is prepared to take all measures to tackle volatility in foreign exchange markets, cautioning that speculative trade on oil futures could be impacting currencies.
"There are some views that speculative activity in the crude oil futures market is spilling over into the foreign exchange market," Mimura told reporters, as the yen edged closer to the 160-per-dollar line.
"The government is fully prepared to respond at all times on all fronts, keeping in mind that the impact that exchange-rate movements have on people's lives and the economy," he said.
Mimura's comments highlight the dilemma facing policymakers as the Middle East conflict upends oil prices and sows turmoil across global financial markets. - Reuters
