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

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

Further comments

Hard to tell how those factors would impact FX rates.

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

Market reaction

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