FACTBOX-Japan policymakers comment on dollar/yen 12-yr low
March 14 (Reuters) - The dollar sank below 100 yen on Thursday for the first time in more than a decade, prompting Japanese officials to say they are keeping a close eye on the yen's surge that has slammed the Tokyo stock market this year. [nYEN]
Following are key comments by Japanese government officials on the dollar's decline against the yen:
NOBUTAKA MACHIMURA, CHIEF CABINET SECRETARY, March 14, from news conference:
"The government's stance is to refrain from commenting on specific exchange rate and stock price levels.
"But as the Group of Seven communique says, too rapid (currency) moves are undesirable for global economic growth.
"I get the impression that recent moves are quite rapid but from a global perspective, they seem to reflect dollar weakness rather than yen strength.
"(U.S. Treasury Secretary Henry) Paulson has repeated anew that a strong dollar was in the U.S. national interest. We are paying attention to such comments.
"As for currency intervention, I will not comment."
FUKUSHIRO NUKAGA, FINANCE MINISTER, March 14, from news conference:
"I will refrain from commenting on currency levels. We are watching currency moves with great interest.
"Excessive moves are undesirable for global economic growth."
HIROKO OTA, ECONOMICS MINISTER, March 14, from news conference:
"I will refrain from commenting on (foreign exchange) levels. The recent rapid rise in the yen is due to the recent rapid fall in the dollar, caused by continued worries about U.S. credit markets and intensifying signs of a U.S. slowdown."
Asked whether the yen's rise has more merits or demerits:
"I cannot say. Theoretically, a rise in the yen will push down import prices in yen terms. But the speed of the moves is very fast, so we cannot generalise.
"What's happening right now is that dollar weakness is causing the strength in the yen. The dollar weakness is taking money out of the dollar and shifting it to oil, pushing up oil prices. Thus rises in the yen and oil prices are being triggered by the dollar's fall.
"Rapid movements are undesirable."
BUNMEI IBUKI, SECRETARY-GENERAL OF RULING LIBERAL DEMOCRATIC PARTY, March 14, from news conference:
"It is difficult for Japan alone to intervene (in the foreign exchange market) considering current economic conditions and our currency policy."
"It is utterly impossible for the correlation between the Japanese and U.S. economies to fluctuate 10-15 percent" in a short time.
"There must be other factors behind this, such as speculative moves."
Regarding the U.S. strong-dollar policy: "Japan's stance is that we support a properly valued dollar."
YASUO FUKUDA, PRIME MINISTER, March 13, from news conference:
"Currency rates are decided by markets, so I cannot comment on whether they are high or low. But rapid fluctuations in foreign exchange rates are not favourable."
ECONOMICS MINISTER OTA, March 13, quoted by Jiji Press after dollar's fall below 100 yen:
"What's behind (the yen's rise) is dollar weakness. There is no sense that U.S. credit fears will bottom out. There are also growing signs that the U.S. economy will slow further.
"In January, exports to the United States fell. If export growth slows, it will affect production so we need to watch developments carefully."
FINANCE MINISTER NUKAGA, March 13, to reporters:
"The moves are dollar weakness rather than yen strengthening."
"I won't comment on specific forex levels, but we will continue to watch currency market developments carefully."
"We have said at the G7 that excessive moves (in foreign exchange rates) are not good for economic growth."
Asked whether the ministry will intervene in the currency market: "I will not comment."
CHIEF CABINET SECRETARY MACHIMURA, March 13, from news conference:
"As I always say on currency and stock prices, it is not appropriate to say whether they are high or low. But I'm watching with the utmost interest as to how their moves would affect the Japanese economy." (Reporting by Tokyo Policy Desk)
