Senior International Monetary Fund official: The Japanese authorities are committed to a flexible exchange rate system so that the exchange rate can act as a shock absorber and support the achievement of monetary policy goals of price stability. The yen has depreciated about 9% so far this year, which is quite significant. Like other countries in the Asian region, Japan's currency trend largely reflects the widening spread of interest rates with the US. The depreciation of many Asian countries' currencies largely reflects the difference in interest rates between the US and Asian economies.