2ND LD: Kan stresses coordination with BOJ on rising yen
Saturday, August 14, 2021 10:03 AM

KARUIZAWA, Aug. 14, 2010 (Kyodo News International) --
(Editors: RECASTING)

Prime Minister Naoto Kan said Saturday the government will continue watching the yen's uptrend against other major currencies together with the Bank of Japan, making it likely that he will meet with Bank of Japan Governor Masaaki Shirakawa over the matter.

The yen's recent surge is ''quite worrying to me,'' Kan told reporters in the resort town of Karuizawa in Nagano Prefecture where he is on vacation. ''I'll continue watching moves in the currency market closely.''

He added that the government has been in contact with the Bank of Japan ''at various levels'' and will maintain ''close communication'' over future market developments.

Kan made the comments after the U.S. dollar hit a 15-year low in the upper 84 yen range earlier this week, prompting calls from political and business circles to halt the yen's further appreciation.

Kan did not make it clear whether he will meet the BOJ chief. But government sources said the government and the central bank are discussing measures including a meeting between Kan and Shirakawa.

If such a meeting is held, it will make financial market participants expect an additional monetary easing step to halt the yen's rise, analysts say. And if no concrete measures come out of that meeting, the yen's rise would gain momentum.

The government and the central bank would therefore need to consider carefully whether to have such a meeting, they said.

Kan said he talked Friday about exchange issues with Chief Cabinet Secretary Yoshito Sengoku and Finance Minister Yoshihiko Noda, while declining to comment on specific steps the government may take to quell the yen's appreciation.

The dollar fell as low as 84.72 yen, its lowest against the yen since July 1995, during overseas trading Wednesday.

The yen's spike stoked fears that it will hurt Japan's export-oriented economy. Kan held a telephone conversation with Sengoku and Noda on Thursday and voiced concern about the ''too rapid'' rise of the yen, according to government officials. The dollar traded a tad below the 86 yen line late Friday in Tokyo.