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UPDATE 1-Yen rise could hit steel industry -Japan steel body

Published 11/26/2009, 01:13 AM
Updated 11/26/2009, 01:15 AM

* Current yen rate to damage Japan's economy -steel body

*Authorities should take steps to stem yen ascent -steel body

TOKYO, Nov 26 (Reuters) - The yen's strength against the dollar could have a major impact on Japan's steel makers, auto, electronics and shipbuilding industries, the head of the country's main steel sector body said on Thursday.

"The (yen-dollar rate of) 87 yen is an extraordinary level," he told a group of reporters. "That will cause a big problem to steelmakers and our customers like carmakers, electronics manufacturers and shipbuilders because their export levels are now quite high."

Shoji Muneoka, chairman of the Japan Iron and Steel Federation, also said the current level of the yen, which jumped to a 14-year high against the dollar on Thursday, could cause a second recession in Japan.

Muneoka, who is also the president of the world's second-biggest steelmaker Nippon Steel Corp, said he hoped the authorities would take measures to stem the yen's rise. (Reporting by Yuko Inoue; Editing by Michael Watson) ((yuko.inoue@thomsonreuters.com; +81-3-6441-1815; Reuters Messaging; yuko.inoue.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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