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Japan's Fujii: Won't intervene in FX markets -media

Published 11/29/2009, 08:43 PM
Updated 11/29/2009, 08:45 PM

* Says must quietly watch current conditions -Mainichi daily

* MOF's Tamaki may discuss currencies in Washington -NHK (Adds MOF Tamaki, details)

TOKYO, Nov 30 (Reuters) - Japanese Finance Minister Hirohisa Fujii said that he would not intervene in currency markets and that now is a time to monitor the markets, Japan's Mainichi daily reported on Monday.

"We have to quietly watch current conditions. We cannot intervene in markets," the Mainichi quoted Fujii as saying on Sunday after a meeting with Prime Minister Yukio Hatoyama.

Fujii, who reiterated that currency moves have been one-sided, also said the government has to take steps on the yen together with monetary policy, the Mainichi reported.

Fujii raised the prospect of a Group of Seven joint statement on currencies on Friday to cool the yen's rally as the dollar tumbled to a 14-year low against the Japanese currency.

But he declined to comment on intervention, saying he was not in a position to use the word due to commitments with other G7 countries on currency flexibility.

Public broadcaster NHK said on Monday that Rintaro Tamaki, the Ministry of Finance's (MOF) top bureaucrat in charge of currencies, will discuss currency issues with U.S. Treasury officials this week.

Tamaki will attend a seminar hosted by the International Monetary Fund in Washington later on Monday.

"It is true that he will attend the IMF seminar on Monday evening, but we cannot say anything further," a MOF official told Reuters. (Reporting by Hideyuki Sano and Tetsushi Kajimoto; Editing by Hugh Lawson) ((hideyuki.sano@thomsonreuters.com; +81 3 6441 1827; Reuters Messaging: hideyuki.sano.reuters.com@reuters.net)) ((If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com))

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