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Hayami denies seeing intervention as an option.

TOKYO, March 8 Kyodo

Bank of Japan Governor Masaru Hayami said Thursday his speech Wednesday was misinterpreted by the media, who reported him as saying market intervention is an option to weaken the yen and helping buoy the dollar against the yen.

Speaking before a House of Councillors Budget Committee session, Hayami said, ''I rather meant to be negative, saying there are many problems'' in stepping into the market to depreciate the local currency.

''Newspapers reported only the first half of my comments. It is fairly unpleasant,'' he said of the reports which helped boost the dollar above 120 yen Wednesday in London and Thursday in Tokyo for the first time in 20 months.

Hayami reiterated his support for a strong yen. ''A strong currency does not work counter to the national interest.''

Finance Minister Kiichi Miyazawa, whose Wednesday comments tolerating a ''natural'' fall in the yen helped fuel yen sales, also brushed out speculation that the government intends to resort to an export drive to shore up the economy by allowing the yen to drop.

''I have no intention whatsoever of artificially driving exchange rates and letting them support economic policies,'' Miyazawa said.
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Publication:Japan Policy & Politics
Date:Mar 12, 2001
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