FRANKFURT, Jan 13: Japanese Finance Minister Koji Omi said on Saturday after meeting European Central Bank (ECB) President Jean-Claude Trichet that currencies should reflect economic fundamentals but that he would not comment on specific levels.

The rates of exchange should reflect fundamentals of the economy, OMI told reporters at the ECB. We are not in a position to comment on exchange rate levels, he said.

The yen slumped to a 13-month low against the dollar earlier this week past 120 yen.

The government of Japan expects the Japanese economy to be supported by the Bank of Japan, he said, adding that he would not comment on what specific steps it should take.

Japan is emerging from a near 10-year battle with falling prices. The Bank of Japan (BOJ) abandoned its zero interest rate” policy last summer, raising interest rates for the first time in more than six years.

The BOJ's policy board meets next week and some economists expect it to raise interest rates to 0.50 per cent from 0.25 per cent. —Reuters