TOKYO—Japan will closely watch exchange-rate moves as market stability was “very important,” Finance Minister Shunichi Suzuki said on Tuesday in the wake of the yen’s decline to a five-year low against the dollar. While Tokyo policymakers have traditionally favored a weak yen for the boost it gives to exports, the sliding yen has become a source of worry recently as it further inflates the cost of food, fuel, and raw material imports. “Exchange-rate stability is very important. We will carefully monitor the currency market and its impact on the Japanese economy,” Suzuki told a news conference, when asked about the softening yen. He refrained from directly commenting on the dollar/yen’s level and whether a weak yen was negative for Japan’s economy. The yen fell as low as 118.44 per dollar on Tuesday to hit a new five-year low on bets the Bank of Japan (BOJ) will maintain its dovish stance, …