Thursday, 23rd September 2010
In Business In Japan,
Bank defends yen intervention
The Bank of Japan's governor has defended the decision to try to control the strength of the yen.
Speaking to newspaper Yomiuri Shimbun, Masaaki Shirakawa stressed that the recent intervention was designed to stop the yen rising further against the US dollar after it rose to a 15-year high – making one US dollar worth 82.86 yen.
''Uncertainty over the outlook [of the global economy] is increasing more than ever,'' Mr Shirakawa said.
He added it was vital for Japan to be aware of the possible impact of the currency market on ''exports, corporate earnings and business sentiment".
It is expected that the Bank of Japan will continue to provide funds to the market in order to ensure a more stable economy.
Japan's prime minister, Naoto Kan, recently admitted that some market experts in Europe and the US viewed the intervention as undesirable.
It is the first time the bank has intervened since March 2004 and the emergency measures taken last week included the selling and buying of around 20 billion yen.
Written by Mark Smith
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