Japanese Finance Minister Yoshihiko Noda said currency devaluations are undesirable, while defending the government’s intervention last month, as the yen rose to higher than 82 for the first time since 1995.
“It’s negative for the global economy if every country competes in a currency devaluation race,” Noda told reporters today in Washington where he is attending a meeting of finance ministers from the Group of Seven. Japan is trying to curb “excessive” yen gains and isn’t intending “prolonged” intervention, he said.
Officials including Dominique Strauss-Kahn, the head of International Monetary Fund, have warned against using currency policy to boost economies.
The yen rose to 81.73 against the dollar today as a bigger- than-forecast loss of U.S. jobs bolstered speculation the Federal Reserve will buy more debt to stimulate the economy.
“I’m watching the markets carefully,” Noda said. “There is no change in my stance that we will take bold actions, including intervention, if necessary.”
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