Ja­pan’s Min­is­ter warns in­vestors about surg­ing yen

The Pak Banker - - COMPANIES/BOSS -

: Ja­panese Fi­nance Min­is­ter Taro Aso sent a warn­ing to in­vestors Fri­day about the surg­ing yen, say­ing the govern­ment will "act ap­pro­pri­ately" in the cur­rency mar­kets if deemed nec­es­sary. "We have seen quite rough move­ments in the ex­change rate re­cently," Aso said at a reg­u­lar news con­fer­ence fol­low­ing a meet­ing of govern­ment min­is­ters. "We will con­tinue to watch the for­eign- ex­change mar­ket with a sense of ten­sion, and we will act ap­pro­pri­ately if that be­comes nec­es­sary." The com­ments came as Ja­panese stocks fell sharply again in early trad­ing. The Nikkei Stock Av­er­age was down more than 5% at the lunch break af­ter falls Tues­day and Wed­nes­day. Tokyo mar­kets were closed Thurs­day for a hol­i­day. The yen has surged against the U.S. dol­lar since the Bank of Ja­pan in­tro­duced neg­a­tive in­ter­est rates on Jan. 29 for the first time. Ini­tially, the move pushed the dol­lar above ¥120, but in Tokyo trad­ing Fri­day, one dol­lar bought only about ¥112. Stock prices have been fall­ing in tan­dem with the yen's rise. The two are linked be­cause a higher yen tends to hit the prof­its of Ja­panese ex­porters and af­fects the broader econ­omy, push­ing down share prices. Et­suro Honda, a close ad­viser to Prime Min­is­ter Shinzo Abe, said Fri­day that the BOJ may call an emer­gency meet­ing to un­der­take ad­di­tional mon­e­tary eas­ing if the fi­nan­cial mar­kets re­main tur­bu­lent.

Newspapers in English

Newspapers from Pakistan

© PressReader. All rights reserved.