Japan to keep to forex strategy
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Japan Finance Minister Sadakazu Tanigaki says the U.S. is not encouraging a weak dollar.
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TOKYO, Japan (Reuters) -- Japan's Finance Minister Sadakazu Tanigaki says he believes the United States is sticking to its policy of wanting a strong dollar.
His statement Tuesday came after Japanese officials said the country will not change its foreign exchange policy despite the yen's current strength against the U.S. dollar.
"The U.S. has always supported a strong dollar and rates that are determined by markets, and that is their basic stance," he said in response to questions in parliament.
The recent plunge in the dollar and the seeming lack of concern on the part of some U.S. officials has raised doubts among market participants over the strong-dollar policy.
Earlier, Zembei Mizoguchi, vice-finance minister for international affairs, said Japan's foreign exchange policy will remain unchanged from before last weekend's Group of Seven (G7) meeting.
At the meeting, finance ministers of the member countries discussed the plight of the dollar. However, no agreement was made to take firm action to bolster its value.
"Our stance is unchanged from before," Mr Mizoguchi said when asked whether the government's policies had changed since the meeting and whether it would keep intervening against sudden moves in the yen.
He declined to comment when asked whether he was happy with the way markets were reacting to the G7 statement.
The Nikkei is down 0.85 percent Tuesday, fuelled by concerns of the yen's strength against the dollar. In mid-afternoon trade, the dollar is up 0.04 percent at 105.65 yen.
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Reuters. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
