Japan's Finance Minister Shunichi Suzuki emphasized that foreign exchange rates are influenced by multiple factors beyond just monetary policies and interest rate differentials.
Speaking on Tuesday, Suzuki noted that geopolitical risks, market sentiment and other elements also play a role, adding that it's challenging to predict how these factors will impact currency movements. Suzuki also mentioned the need to closely observe how changes in US monetary policies will affect exchange rates through various channels.
His comments come as US Federal Reserve Chairman Jerome Powell indicated plans to begin cutting rates.
