(Bloomberg) -- Japan kept up its drumbeat of warnings against currency volatility, with a top finance ministry official saying that foreign exchange rates should reflect fundamentals, and authorities in Tokyo are watching moves closely.

Vice Finance Minister for International Affairs Masato Kanda said he voiced Japan’s concerns during a meeting in Sao Paulo with counterparts from the G-20.

“I said (during the G-20 session on the global economy) that we should be mindful of the risk of increased volatility in financial markets, including the foreign exchange market, and that excessive volatility in the exchange rate is undesirable,” Kanda told reporters Wednesday after the meeting.

“I also said the G-20’s commitments on exchange rates remain important.”

Kanda was speaking hours after the yen came within a whisker of its year-to-date low versus its US counterpart, trading as weak as 150.85 to the dollar.

Japanese financial authorities have regularly used verbal intervention to put a floor under Japan’s currency as it traded around the threshold of 150. The finance ministry last entered the market to buy the yen in 2022, in a move that largely gained the tacit approval of its peers.

While a weaker yen has benefited exporters and buoyed stock prices, Japanese policymakers are on guard against sharp moves lower, which can disrupt the economy and markets. Household spending has declined almost every month for more than a year as consumers pared outlays in the face of persistent inflation.

As the Bank of Japan inches toward ending its negative interest rate policy, policymakers are looking for signs of a virtuous cycle linking wage gains to stable inflation. A key goal is replacing cost-push inflation fueled by more expensive energy and food imports with demand-led inflation driven by consumption.

Authorities await the results of annual wage negotiations expected to culminate with an agreement in mid-March. Anecdotal evidence so far indicates wage increases this year will outpace those achieved a year earlier, in a sign that the wage-price cycle is emerging.

Kanda represented the Japanese delegation at the G-20 gathering on behalf of Finance Minister Shunichi Suzuki, who stayed home to focus on passing the national budget for the coming fiscal year.

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