TOKYO, Aug 10 (Reuters) - It is not desirable for Japan to intervene in currency markets when currency rates are in line with economic fundamentals, Katsuya Okada, the No.2 figure in Japan's main opposition Democratic Party said on Monday.
Surveys show the Democrats have their best ever chance of ousting the long-ruling Liberal Democratic Party (LDP) in an Aug. 30 election, ending more than half a century of almost unbroken rule by the business-friendly party.
"What to do with currencies should be left to a new government. But I think trying to move currency rates artificially when they are in line with economic fundamentals would be undesirable in the long run," Okada, now the Democrats' secretary-general and tipped by some as a possible finance minister in its cabinet, told Reuters in an interview.
Many analysts expect the Democrats to try to avoid upsetting currency markets despite past rhetoric in favour of a stronger yen and an economic growth policy that stresses boosting domestic demand over reliance on exports.
The Democrats caused a ripple in currency markets earlier this year when one of their spokesmen said Japan should avoid buying U.S. government bonds.
Japan intervened heavily in markets earlier in the decade to stop a rising yen from harming exports, but it has since stayed out of markets for more than five years.