— Adds IMF Lagarde Quotes, Background From 4th Paragraph
TOKYO (MNI) – Japanese Finance Minister Jun Azumi repeated on
Friday that the government will take “appropriate action in a timely
manner” in the currency market to prevent a sharp yen rise from hurting
the economy’s gradual recovery.
He also told an economic forum that Tokyo is closely watching forex
rates “with a sense of urgency,” a remark he has often made which is
aimed at keeping speculative moves from pushing up the yen.
Japan has not intervened in the forex market since its large-scale
yen-selling operations in the last quarter of last year.
International Monetary Fund Managing Director Christine Lagarde
also told the forum that the IMF’s key concerns about Japan are “upward
pressure on the yen” and lingering deflation.
Asia has coped with the drag from the European debt and political
crisis fairly well but is not immune to the negative effects, she said.
Last month the IMF said that while the yen is overvalued in the
medium-term, threatening exports, it still believes Japan’s economy will
continue to recover and that GDP will grow 2% this year and 1.7% next
year as forecast.
tokyo@marketnews.com
** MNI Tokyo Newsroom: 81-3-5403-4833 **
[TOPICS: M$A$$$,M$J$$$,MGJ$$$]
