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Japan says no forex intervention in Dec -govt

Published 12/30/2008, 05:09 AM
Updated 12/30/2008, 05:10 AM

TOKYO, Dec 30 (Reuters) - Japan did not intervene in the currency market from Nov. 27 to Dec. 26, despite the dollar's fall to a 13-year low against the yen during that period, government data showed on Tuesday.

A stronger yen makes Japan-made goods less competitive overseas and deflates exporters' earnings abroad when converted back into the Japanese currency, hurting their profits and weighing on the export-dependent economy.

Japanese monetary authorities have not intervened in the foreign exchange market since March 2004.

But Japanese officials have recently expressed concern over the impact of the yen's strength.

Vice Finance Minister for International Affairs Naoyuki Shinohara said on Dec. 18, the day after the dollar hit a 13-year low of 87.13 yen, that the ministry would take appropriate action as needed in the currency markets. (Reporting by Masayuki Kitano)

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