|
CNBC'S MOST SHARED
- Investing During Earnings Season
- CIT Board Reaches Agreement on $3 Billion Rescue Financing
- Explosion in Social Media Fails To Create Many Jobs—So Far
- The World’s Most Expensive Places To Live 2009
- Upside Call
- Social Media: What Employers Think
- Dwyane Wade Switch Is Official
- Oil Steadies Above $63, Bullish Economic News Supports
- Oil vs. Natural Gas: Something Has to Give
- Survey: US Recession Easing But Likely Not Over
- VW to Pay $11.28 Billion for All of Porsche: Report
- Microsoft Deal Talk, Optimism Overshadow Results
- UK GDP to Post Biggest Fall Since the War: Ernst & Young
- White House Sees Second-Quarter GDP Improving
- Banks with Bailout Funds Say Loans Rise: Survey
- Corporate Cost-Cutting: Will Early Gains Turn to Pain?
- Earnings Woke Up the Market, but Can It Continue?
- Berkshire Hathaway Rallies 6% For Best Week Since March Lows
- Market 360: The Week's Best & Worst
- How Bad is the DVD Decline and Who Suffers?
- Teva, Propofol And Michael Jackson
- Pros Say: US Market Rally Likely to Continue
- Gold Miner Attracting Big Bull Interest
- Dick Bove: Next Week’s Bank Earnings Will Be ‘Terrible’
- Jesuthasan: 'Deleveraging Pay-The Proof is in the Bathwater'
- Art Cashin: Traders Don't Trust 'Short Term' Earnings
Text Size 
Japan's top government spokesman said on Thursday that excessive currency moves are undesirable as they would hurt the stability of Japan's economy and financial markets.
 |
The yen jumped to a five-month peak of 91.80 yen to the dollar on Wednesday as mounting doubts about the health of the global economy spurred risk aversion.
A soaring yen could jeopardise Japan's chances of pulling out of a recession, raising the prospect of Tokyo intervening in the markets to weaken its currency for the first time in five years.
"As I have said before, excessive moves in market rates have a bad impact on the stability of the economy and financial conditions and therefore are undesirable," Chief Cabinet Secretary Takeo Kawamura told a news conference.
"We'll keep a close watch on currency market trends."
Growing unease about the global economy has prompted investors to rush out of trades that bet against the yen while favoring higher-yielding but often riskier currencies.
Market participants said they were cautious about the possibility of intervention by Japanese officials to fight the currency's rapid rise, which hurts exporters by eating into the profits they make overseas when converted back into yen.
More From CNBC.com
- Yen Steadies After Sharp Rally on Risk Aversion
- China-Australia Spy Case Fans Fears, Hits Aussie Dollar
- China Think-Tank Sees 2009 Economic Growth Near 8%
- More Asia Pacific News
But they said few expect any immediate intervention as the yen is still far from January's 14-year peak near 87 yen to the dollar. On Thursday the dollar climbed back to above 93 yen.
Japanese officials have said repeatedly the country is not considering intervention in currency markets. However, given the country's reliance on exports, they may be more motivated.
Japan has a long history of trying to stem yen strength by intervening to buy dollars, but it has stayed out of the market since a 35 trillion yen ($377 billion) campaign over 15 months ended in March 2004. The Ministry of Finance has gradually moved away from heavy intervention because that last campaign had mixed results.
Print
Email
Data is a real-time snapshot *Data is delayed at least 15 minutes