Russ, I hope you are sitting down.
If not, please do so.....
Tanigaki - Japan monitoring forex market, may take ´appropriate action´- Kyodo
Friday, November 5, 2004 3:11:08 AM
afxpress.com
Tanigaki - Japan monitoring forex market, may take 'appropriate action'- Kyodo TOKYO (AFX) - Finance Minister Sadakazu Tanigaki said Japanese monetary authorities are closely monitoring foreign exchange rates, indicating that they are ready to step into the currency market to stem appreciation of the yen if they consider it necessary, Kyodo News reported
At a regular Friday morning news conference, Tanigaki said that if foreign exchange rates are judged not to be moving in line with economic fundamentals, Japan will "take appropriate action at an appropriate time," Kyodo reported. In New York trading overnight, the dollar fell briefly to 105.69 yen, its lowest level there since mid-April
Many currency analysts view the 105-yen level as a tripwire for Japanese government market intervention, as many companies have used that exchange rate when preparing their financial projections for the current business year to March 2005
The Japanese government has not intervened in the currency market since mid-March, after spending a record 35 trln yen over the previous 15 months in a bid to halt the yen's appreciation against the dollar
The Japanese government and business community become concerned whenever the yen appreciates steadily against the dollar, fearing this could cause a drop in exports, the driving force behind Japan's current economic recovery |
