The dollar has fallen over 6% since Dec. 6 as speculation grew that the U.S. Federal Reserve may soon halt its campaign of interest rate increases that has underpinned the greenback for most of last year. Around 0815 GMT, the U.S. currency was changing hands at Y114.00. Hosokawa also repeated that the dollar-yen rate should move according to the relative strength of the U.S. and Japanese economies. It's important that the rate "should move in reflection of (economic) fundamentals" as agreed by the financial chiefs of the Group of Seven advanced countries, he said. But Hosokawa declined to comment on the market observation that Asian countries such as South Korea and Taiwan have been buying the dollar to weaken their respective local currencies, which have been strengthening rapidly. He also didn't comment on a question regarding whether Japan may jointly intervene with other Asian nations. As for deflation, Hosokawa said the Japanese government and the Bank of Japan need to continue their utmost efforts to end years of price declines.