Japanese Finance Minister Yoshihiko Noda on Friday kept up his verbal intervention in the face of the yen's gains, saying that currency moves have been one-sided over the past few days, but would not comment on the possibility of market intervention.
Authorities have stepped up their warnings about the yen's strength after the dollar hit a four-month low below 79 yen this week, although the market sees little chances of imminent currency intervention. "Movements have been one-sided over the past few days and I'll closely watch market moves," Noda told a news conference after a cabinet meeting.
A strong yen hurts the fragile, export-driven Japanese economy, which was tipped back into recession by the March 11 earthquake, deadly tsunami and subsequent nuclear power crisis. Noda said the government should deal with the plight of Japanese companies grappling with the currency's strength and electricity shortages, and prevent their sentiment from worsening.
"The Japanese economy is at the crucial moment," he said. Asked about Standard & Poor's warning about a possible US debt rating downgrade, Noda said market confidence in the dollar had not been shaken. Standard & Poor's said there was a one-in-two chance it could cut the United States' prized triple-A rating if a deal on raising the government's debt ceiling is not agreed upon soon. "I won't comment on rating judgment by private credit ratings companies," he said. "Regardless of rating, I don't think confidence in the dollar is being shaken greatly.
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