TOKYO – Japan is watching closely for any signs of renewed strengthening of the yen, Finance Minister Taro Aso said on Friday.
"It is certain that the excessive yen gains that had been seen until recently have been correcting, but there is a full possibility that this might change, so we are closely watching," Aso told reporters he had said on a conference call with U.S. Treasury Secretary Timothy Geithner.
He added that he had urged Geithner to do the utmost for the United States to avoid the looming "fiscal cliff" of automatic tax hikes and spending cuts, as it could have an impact not only on the U.S. economy but on other countries.
President Barack Obama and lawmakers are launching a last-chance round of budget talks before a New Year's deadline to avoid the fiscal cliff.
(Reporting by Tetsushi Kajimoto; Editing by Edmund Klamann and Patrick Graham)