Japan to monitor currency market carefully.
Japanese monetary authorities will monitor currency fluctuations carefully, as volatility in foreign exchange rates will affect business sentiment, Vice Finance Minister for International Affairs Zembei Mizoguchi said Thursday.
''Volatility in foreign exchange rates affects corporate sentiment,'' Mizoguchi told reporters. ''We will continue to monitor market movements carefully.''
Mizoguchi declined to comment on specific foreign exchange rates. He also said Japan's position on currency policy was clarified in a statement adopted by the Group of Seven (G-7) finance leaders at their meeting in Boca Raton, Florida, in February.
The G-7 statement warned that currency market volatility poses a risk for the global economy, while calling for ''more flexibility'' in exchange rates. Japan has interpreted the statement as allowing it to intervene in the currency market when necessary.
The U.S. dollar remained weak in the lower 104 yen range Thursday in Tokyo following the release of upbeat business sentiment data from the Bank of Japan's quarterly survey. At 5 p.m. the dollar was quoted at 104.12-14 yen.
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|Publication:||Japan Weekly Monitor|
|Date:||Apr 5, 2004|
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