G7 warns against 'excessive volatility' of yen

Top industrialised nations warned against “excessive volatility” in the yen exchange rate today, Japan’s Finance Ministry said.

The brief communique was issued by the Group of Seven nations and their central bank governors, the ministry said on its website.

“We are concerned about the recent excessive volatility in the exchange rate of the yen and its possible adverse implications for economic and financial stability,” the G7 statement said.

The yen has surged against the dollar in recent days, hitting the 90-yen level on Friday – a 13-year high. Today in Tokyo, the dollar stood at 94.03 yen, down from 94.24 yen.

The rise of the yen has alarmed Japan, where export-oriented businesses are already suffering because of the global financial crisis.

A rising yen makes Japanese products more expensive in the United States and elsewhere.

The statement also reaffirmed the group’s support for a strong and stable international financial system, and said the nations were monitoring markets and would cooperate as necessary.

The G7 includes Japan, the United States, Britain, France, Germany, Canada and Italy.