BOJ Members Became More Concerned About Yen in July

Discussion in 'Wall St. News' started by ASusilovic, Aug 13, 2010.

  1. Aug. 13 (Bloomberg) -- Bank of Japan board members last month indicated they were worried about the yen’s advance, a sign they see the currency’s threat to exporters as a bigger economic risk than fallout from Europe’s sovereign-debt crisis.

    “With regard to the recent appreciation of the yen and fall in Japanese stock prices, some members said that the effects on Japan’s economic activity should be examined closely,” minutes of a July 14-15 meeting published today in Tokyo showed.

    A weakening U.S. economy spurred the yen’s climb to a 15- year high against the dollar this week. It has fallen since Finance Minister Yoshihiko Noda and central bank Governor Masaaki Shirakawa said they are closely watching the currency, comments investors say indicate preparedness to curb currency gains to protect the nation’s economic recovery.

    “The chance the BOJ will ease policy at the September meeting or hold an emergency meeting is rising” unless the yen stems its gains, said Hiroaki Muto, a senior economist at Sumitomo Mitsui Asset Management in Tokyo.