Yen falls from eight-month highs

BBC NEWS | 2009/09/29 07:25:33 GMT

The yen has weakened from Monday’s eight-month highs against the US dollar following comments from Japanese Finance Minister Hirohisa Fujii. It hit 88.23 to the dollar on Monday after Mr. Fujii made comments taken to mean that he was comfortable with the yen’s strength. But on Tuesday, he said the government might intervene in the currency markets if exchange rates made irregular moves. The yen gave up most of Monday’s gains, returning to about 90 to the dollar.

‘National interest’

“If [exchange rates] move abnormally, we could take appropriate measures for our national interest,” Mr. Fujii told a news conference. Mr. Fujii became finance minister last month after the Democratic Party of Japan (DPJ) ended more than 50 years of almost unbroken rule by the Liberal Democratic Party. “Perhaps [Mr.] Fujii didn’t realise how much the market would move on his comments after he became finance minister. But now he realises that this isn’t such a good thing,” said Tokichi Ito at Trust & Custody Services Bank in Tokyo. Japan has not intervened in the currency markets since March 2004.

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