Japan’s prime minister warns on rapid rise in yen

Discussion in 'Forex' started by ASusilovic, Nov 13, 2007.

  1. The yen is appreciating “too fast” and speculators need to “be careful”, Yasuo Fukuda, Japan’s prime minister, warned in an interview with the Financial Times on Monday.

    As the yen moved to an 18-month high of Y109.13 to the US dollar on Monday night, Mr Fukuda said: “In the short term, yen appreciation would certainly be a problem. Any kind of sudden change in exchange rates would not be desirable.”

    While he stopped short of threatening Japanese intervention in the currency markets, Mr Fukuda said: “Speculative movements need to be kept in check. What I am saying is: ‘Be careful, so that it [intervention] will not happen.’”

    His remarks came shortly after Nobutaka Machimura, chief cabinet secretary, surprised some market participants by appearing to back the yen’s appreciation. “It is wrong to think that Japan should object to the yen’s appreciation. In fact, I think a high yen is basically good for Japan.”

    http://www.ft.com/cms/s/0/a7a70b58-914c-11dc-9590-0000779fd2ac.html