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Thursday, 16th September 2010
In Business In Japan,

Japan 'will take necessary forex action'

The Japanese government will continue to take any necessary action in order to weaken the yen on the global foreign exchange markets, top officials have said.

Prime minister Naoto Kan said that his country would take more "decisive" steps to stop further strong appreciation of the currency should such a route prove necessary.

The country's decision to take action on Wednesday (September 15th) prompted criticism from both the US and Europe, with some being concerned that the move strengthens arguments for other countries to weaken their currencies.

Jean-Claude Juncker, chair of the eurozone finance minister group, said: "Unilateral actions are not an appropriate way to deal with imbalances".

However, some of the leading exporters in the country praised the move to weaken the currency.

The yen fell back to more than 85 per dollar after the intervention on Wednesday, and has remained around this level in Thursday's trading. It had reached a high of 82.86 before the government intervened.

Written by Mark Smith