Japan Govt Data Confirms No Forex Intervention in Jan.

Tokyo, Jan. 30 (Jiji Press)--Japanese Finance Ministry data confirmed Friday that there had been no foreign exchange market intervention in the period between Dec. 29 and Wednesday.

During the period, the dollar plunged from over 159 yen to near 157 yen in the afternoon on Jan. 23, and from above 158 yen to below 156 yen early in the following day.

Market players suspected that the dollar's dives may have been caused by yen-buying market intervention by authorities. They now believe that Japanese and U.S. authorities conducted so-called rate checks, a precursor to intervention, at that time.

The dollar later dropped as low as below 153 yen amid fears of joint market intervention by Japanese and U.S. authorities.

On Monday, Atsushi Mimura, Japanese vice minister of finance for international affairs, told reporters that he would not clarify whether a rate check had been conducted. "We'll respond appropriately while closely cooperating with U.S. authorities if necessary," he added.

[Copyright The Jiji Press, Ltd.]