By Tetsushi Kajimoto<\/p>\n\n\n\n
TOKYO (Reuters) -Japan will take appropriate steps should the yen weaken excessively, Finance Minister Shunichi Suzuki said on Friday after the currency plumbed seven-month lows against the dollar.<\/p>\n\n\n\n
Suzuki warned against investors selling\u00a0the yen\u00a0too far as the currency weakened past 145 to the dollar, a level that made speculators wary of potential intervention by Japanese authorities.<\/p>\n\n\n\n
When the yen breached the 145 level last September, authorities intervened in markets to support the currency for the first time in 24 years.<\/p>\n\n\n\n
“It is important for currencies to move stably reflecting fundamentals,” Suzuki told reporters.<\/p>\n\n\n\n
“Sharp (OTC:SHCAY) and one-sided moves are seen in the currency market lately. The government is watching currency market moves with a great sense of urgency. We will respond appropriately if the moves become excessive.”<\/p>\n\n\n\n
A weak yen has both positive and negative effects on the economy, depending for example on the export or import sectors.<\/p>\n\n\n\n
However, it is not positive considering the current situation where government policy focuses on steps to mitigate the impact of rising prices, Suzuki added.<\/p>\n\n\n\n
Generally, yen weakening pushes up import costs of food and energy for resource-poor Japan, which would deal a blow to consumers struggling to make ends meet.<\/p>\n\n\n\n
Suzuki stopped short of saying he was ‘deeply concerned’ or declaring an intention to take ‘decisive steps’, which were the phrases he used as a prelude to the last time authorities intervened in the currency market.<\/p>\n\n\n\n
On Friday, the Japanese currency struck 145.07 per dollar in early Asia trade, its lowest in over seven months, but it had steadied to 144.80 by late morning.<\/p>\n\n\n\n
The yen has depreciated by more than 9% against the dollar so far this year.<\/p>\n\n\n\n
Japanese authorities have said the velocity of currency moves are the deciding factor for intervention, not specific levels.<\/p>\n