InsideJapan News Network

Despite receiving some criticism for its currency intervention earlier this week, Japan's finance minister Yoshihiko Noda has confirmed that more action will be taken if the country deems it necessary.

The currency dropped in value earlier this week after the government intervened and sold yen on the markets.

However, policymakers in Europe and the US criticised the move, which was designed to help the country's export led-economy.

"I'm aware of the various comments, but with deflation, our economy is in a severe situation and it's undesirable that the strong yen be prolonged," Bloomberg claims Mr Noda told reporters.

He added that he believes it is important to make clear the Japanese position on the reasons for currency intervention.

Since the currency intervention, the yen has traded at levels of more than 85 per dollar, down from highs of closer to 82 per dollar.

Despite reaching a 15-year high in nominal terms against the dollar, the yen remains at a lower level than the 1995 peak when price changes and a comparison to a currency basket used by the country's largest trading partners are taken into consideration.

Written by Susan Ballion


Related news stories:
Bank of Japan to 'sit tight' on interest rates (3rd September 2008)
Extreme weather warnings remain as Jangmi passes (2nd October 2008)
Japanese men 'putting more effort into looks' (20th October 2009)