Exchange rates are determined by various factors, not just monetary policies, rate differentials

Japan’s Finance Minister Shunichi Suzuki said on Tuesday that “exchange rates are determined by various factors, not just monetary policies and interest rate differentials, but also geopolitical risks, market sentiment and others.”

Other comments

It is hard to say how these factors would impact exchange rates.

It will monitor how changes in US monetary policies would affect through various channels.

Market reaction

USD/JPY remains traded below 145.00 following these comments, adding 0.15% on the day.