Miyazawa hints at intervention against stronger yen

Japan Policy & Politics, July 26, 1999

TOKYO, July 23 Kyodo

Finance Minister Kiichi Miyazawa voiced Japan's readiness Friday to counter the yen's rapid rise against the dollar with dollar-supporting market intervention. Commenting on the dollar's recent fall below 117 yen, Miyazawa said the yen's rapid rise is "not good," and that it could "adversely affect Japan's efforts to recover from the economic slump." "We will closely monitor developments on the currency market and send a message if necessary," Miyazawa told a news conference, referring to possible yen-selling, dollar-buying intervention by Japanese monetary authorities. The dollar sank to as low as 116.05 yen Thursday in New York, slipping below 117 yen for the first time in nearly five and a half months on inflationary fears in the United States and expectations for an economic recovery in Japan. In the midmorning session Friday in Tokyo, the dollar was changing hands at 117.11-14 yen.