Japan Noda warns on yen, suggests joint steps difficult

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TOKYO, Sept 4 (BestGrowthStock) – Japanese Finance Minister
Yoshihiko Noda said on Saturday Tokyo would take decisive steps
to stem the yen’s rise when needed, while suggesting that
coordinated currency market intervention was a difficult
option.

Traders are getting cautious about bidding the yen up too
much after Japanese ministers kept up warnings against the
currency’s surge to 15-year high versus the dollar.
Policymakers have repeatedly said they could take decisive
action on the yen — normally a code phrase for currency
intervention.

Prime Minister Naoto Kan and ruling party powerbroker
Ichiro Ozawa are facing off in a ruling party leadership vote
on Sept. 14 that is distracting policymakers as Japan confronts
a strong yen and weak economy. The winner will likely be prime
minister by virtue of the party’s majority in the powerful
lower house.

Kan and Noda have said Japan would take decisive action on
currencies without using the word intervention. But Ozawa has
more specifically threatened to intervene in the currency
market. [ID:nTOE68105H] [ID:nTOE682011]

“What they (Kan and Ozawa) have been saying means the same
thing. The issue is whether we would actually decide to
intervene at the end,” Noda said on a Tokyo television
programme.

“Our statement that we would take decisive steps when
needed says it all,” he added.

Despite repeated warnings, traders have doubts over whether
Tokyo will step into the forex market (Read more about the difference between the forex market and the stock market. ) now because it could have
trouble convincing leaders of other major economies about the
need to intervene at a time when they are calling on China to
make the yuan more flexible to ease global imbalances.

They say the United States and European countries seem to
have no interest in helping Japan by jointly intervening in the
market to curb the yen’s rise as they want to benefit from
falls in their currencies, which boost exports.

Asked about the perception that coordination with other
countries on the yen’s rise seem to be tough, Noda said, “It’s
about what we can do while coordination is difficult.”
($1=84.38 Yen)
(Reporting by Yoko Nishikawa; Editing by Lincoln Feast)

Japan Noda warns on yen, suggests joint steps difficult