By Makiko Yamazaki
TOKYO (Reuters) -Japanese Finance Minister Katsunobu Kato said on Tuesday that the government will be vigilant for volatile movements on the currency market, as the yen slid to two-month
lows past 150 to the dollar amid rising fiscal concerns.
"It's important for currencies to move in a stable manner reflecting fundamentals," Kato said at a regular news conference, when about recent foreign exchange moves.
"We will thoroughly monitor for excessive fluctuations and disorderly movements in the foreign exchange market," he added.
The yen has been under pressure since Japan's ruling party picked conservative Sanae Takaichi as its leader on Saturday. She is an advocate of late premier Shinzo Abe's "Abenomics" strategy to boost the economy with aggressive spending and easy monetary policy,
The appointment, which puts her on course to become the nation's first female prime minister, spurred markets to price in the chance of more fiscal stimulus and reduce bets of a rate hike at the BOJ's next policy meeting later this month.
The yen touched 150.62 to the dollar, the weakest level since August 1, and skidded to 176.35 per euro, a fresh all-time low.
Kato's comments reflect Japanese policymakers' caution about the yen's weakness, which has been a headache for them because it accelerates inflation by pushing up import costs, weighing on consumption.
However, his tone on Tuesday was more measured compared with previous comments earlier this year, when he warned authorities were "alarmed over currency moves" and pledged to "take appropriate action against excessive moves."
(Reporting by Makiko Yamazaki; Editing by Christian Schmollinger and Kim Coghill)
