UPDATE 1-Japan’s Noda says ready to use all measures on yen

(adds quotes, background)

BEIJING, Aug 28 (BestGrowthStock) – Japanese Finance Minister
Yoshihiko Noda said on Saturday he was ready to employ “all
possible measures” to tackle the rise of the yen, which was
having a “big impact” on the country’s economy.

Speaking in China’s national capital, Noda told reporters
he wanted the Bank of Japan to guide policy, but also to share
its views on the economy with the government.

He also said there was room for Japan’s central bank to
improve the monetary situation, but it was up to the bank to
consider specific policy steps.

“Many people are worried and the government is taking a
serious view, and we must adopt all possible measures,” Noda
said.

“As the Prime Minister said, we will take decisive measure
s when necessary while watching market trends with great
interest.”

Noda was speaking after meeting China’s Minister of
Finance, Xie Xuren, on the sidelines of Japan-China high level
economic dialogue.

Tokyo is scrambling to craft a package of steps to prop up
a fragile, export-led economy as the yen hit a 15-year high
against the dollar this week, while keeping up pressure on the
Bank of Japan to do more to pull the country out of deflation.

Speculation has mounted about what options Tokyo might
adopt to curb the yen’s rise, such as forex intervention, while
companies are better placed to cope than 15 years ago, when the
yen hit a record peak of 79.75 per dollar (JPY=: ).

Prime Minister Naoto Kan vowed on Friday to take decisive
measures when necessary to curb the yen’s rise, signalling a
possibility of currency intervention.

Japan’s authorities have not intervened since March 2004,
when a 15-month yen-selling spree came to an end. During that
period, they sold 35 trillion yen, the equivalent of more than
one-third of the annual budget.
(Reporting by Tetsushi Kajimoto; Editing by Ron Popeski)

UPDATE 1-Japan’s Noda says ready to use all measures on yen