The Japanese government expressed concern on Tuesday about the serious depreciation of the yen against the dollar. As Finance Minister Shun'ichi Suzuki said at a press conference in Tokyo, sharp currency fluctuations are undesirable.

The government is watching closely to see what impact the depreciation of the yen will have on the Japanese economy, he said.

According to the minister, there is also a threat of deterioration in the business environment as a result of the global rise in prices for energy carriers, raw materials and foodstuffs noted now.

As of 11:00 local time, one dollar was worth 132.6 yen - almost two yen more than a day ago. This is the deepest fall in the Japanese currency in more than 20 years. Against the euro, the yen also fell to its lowest level since 2015.

This is due to the fact that the Central Bank of Japan is pursuing an extremely soft policy, maintaining the credit rate at a virtually negative level to stimulate the conjuncture.

The US and EU financial authorities are tightening credit terms to curb inflation. Rising rates in the United States and the EU make it more profitable to invest in financial instruments denominated in dollars and euros, which leads to an increase in demand for this currency.

At the same time, the head of the Bank of Japan, Haruhiko Kuroda, reiterated in parliament on Tuesday that he did not intend to make changes to financial policy. This may further spur the fall of the yen, notes the Kyodo news agency. The depreciation of the national currency is beneficial for Japanese exporters, but leads to an increase in prices for imported goods, including energy resources and food.