By Makiko Yamazaki and Satoshi Sugiyama

TOKYO (Reuters) – Japanese Finance Minister Shunichi Suzuki said on Monday authorities were watching exchange-rate moves closely, speaking after the plummeted in its biggest rout since 1987.

He said it was desirable for foreign exchange rates to move in a stable manner and reflect economic fundamentals.

Speaking to reporters, he declined to comment on whether current yen levels were deemed excessive.

“It’s hard to say what is behind the decline in stocks,” Suzuki told reporters, adding that the government was cooperating with the Bank of Japan (BOJ) and closely monitoring markets with a sense of urgency.

Japan’s Nikkei stock average plunged 13% to hit seven-month lows on Monday and the safe-haven yen surged as fears of a U.S. recession sent investors fleeing from risk.