Japan 'opposes yen intervention'

Hirohisa Fujii said currency intervention was not necessary as long as the yen moved gradually, and added other countries would not support it.

Mr Fujii also said a strong yen had merits - which is unusual, considering Japan is such a large exporter.

The yen is up 6.7% against the dollar since June. A stronger yen makes Japanese exports less competitive.

Japan has in the past intervened in the currency markets to weaken the yen when the government thought its rise was threatening growth in the world's second-largest economy.

But the authorities have not intervened since 2005.

New direction

"We can't conduct intervention because the current foreign exchange markets won't move without a joint intervention," Mr Fujii said.

"I can't think other countries will conduct joint intervention even though the yen rises slightly."

Japan's parliament has confirmed Yukio Hatoyama as prime minister, handing power to his untested Democratic Party of Japan (DPJ) and ending more than 50 years of almost unbroken rule by the Liberal Democratic Party.

Mr Hatoyama will appoint key members of his cabinet over the next few days.

His comments about a strong yen reflect the DPJ view that a strong yen can be in the country's interest, and are a marked departure from the former ruling party's long-standing view.


Post a Comment