Tokyo Warns of Decisive Action against Yen's Excessive Fall

Washington, Oct. 14 (Jiji Press)--Japan is "always ready to take decisive action" if the yen's exchange rates "repeatedly show excessive fluctuations," the country's top currency diplomat warned after the yen plunged to new 32-year lows beyond 148 against the dollar on Friday.

Speaking to reporters in Washington on the day, Masato Kanda, vice finance minister for international affairs, declined to comment on the current foreign exchange rate levels, but added, "I think many people are viewing (the yen's exchange rates) as moving somewhat wildly."

In New York trading the same day, the yen dived as low as 148.86 per dollar, an unseen level since August 1990, amid speculation of widening interest rate gaps between Japan and the United States.

Kanda referred to concerns about increased volatility in foreign exchange markets that were expressed in a joint statement adopted at a Group of Seven meeting of finance ministers and central bank chiefs on Wednesday.

"As vigilance against large foreign exchange fluctuations is growing, the possibility is increasing that we have to take necessary measures," the Japanese official said, without elaborating on what the necessary measures are.

[Copyright The Jiji Press, Ltd.]