* Japan must be ready to counter one-sided FX moves-Aso
* FX a transmission channel, not goal, of easy policy-BOJ
* Aso's comments weaken yen, bolster Nikkei shares
By Leika Kihara
TOKYO, Nov 14 Finance Minister Taro Aso sparked
a bout of yen selling that pushed the dollar near a two-month
high and bolstered Tokyo shares when he told a parliamentary
committee that Japan must retain currency intervention as a
A senior Bank of Japan official said it was a common
understanding among major advanced nations that the objective of
monetary policy is to stabilise prices, not influence foreign
"The currency market of course is an important transmission
channel for monetary policy. But monetary policy doesn't
directly aim at controlling exchange rates," BOJ Executive
Director Masayoshi Amamiya told the parliamentary committee on
Finance Minister Taro Aso told the same committee that Japan
no longer faces criticism from other major economies that its
"Abenomics" stimulus policies are aimed at intentionally
weakening the yen, giving exporters a trading advantage.
He added that as with any other country, Japan needed to
ensure it retains currency intervention as a policy tool and be
ready to take action when markets are excessively volatile.
"When there's one-sided yen weakness or excessive yen rises,
we need to send a clear signal to markets to stop such one-sided
moves," Aso said.
"The public will suffer unless policymakers have the
necessary means to counter speculators that aim for short-term
profits," he said.
The remarks sent the dollar as high as 99.735 yen,
not far from a two-month high of 99.80 yen touched on Tuesday.
The yen's decline helped pushed up Tokyo's Nikkei share average
almost 3 percent to a near six-month high.
Aso and Amamiya, a top BOJ bureaucrat overseeing monetary
policy affairs, made the remarks in response to a question by an
opposition party lawmaker on how the government plans to manage
Japan's huge foreign reserves.
Japan last intervened heavily in the currency market in late
2011 to stem sharp yen rises and soften the blow on the
export-reliant economy, which was reeling from a devastating
earthquake and tsunami in March.