Tanigaki says Japan will act to counter unjustified forex moves -
Wednesday, January 19, 2005 10:04:51 AM
afxpress.com
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TOKYO (AFX) - Finance Minister Sadakazu Tanigaki said Japan will take decisive action to counter unjustified movements in the yen's exchange rate against other currencies
At a press conference, Tankgaki was asked his view of the monthly economic report for January, released today, in which where the Cabinet Office added foreign exchange rates to a list of major risk factors, which also include high oil prices and inventory adjustment in the information technology (IT) sector. "I can't comment on recent moves in currency exchange rates, but we need to have a close look at movements, and if there are unjustified movements, we will take decisive action to counter them," said Tanigaki
Shortly after the press conference ended, the US dollar was trading at 102.32 yen, and the euro was trading at 133.73 yen
Earlier this week, the Japanese unit surged to 101.67 yen against the dollar -- its highest level since December 1999. And it has climbed 6 pct against the euro since late December
This has fuelled concern that the firmer yen could shrink profits earned overseas by Japanese exporters, one of main drivers behind Japan's economic growth. Asked about the January economic report's unchanged assessment of the Japanese economy, Tanigaki said: "I understand the economy is in an adjustment phase, in an upward climb." Asked also about what might be discussed at the Group of Seven industrial nations' meeting in early February, Tanigaki said likely topics include measures to help the countries hit by the Indian Ocean tsunamis and global structural issues. Tanigaki also said his ministry held a seminar in London for foreign investors on Japanese government bonds (JGBs) to expand the pool of holders of Japanese debt. Foreign investors currently hold some 4 pct of the outstanding amount in JGBs. "We need to diversify investor sources," Tanigaki said. |
