G7 express concern over yen's rise in emergency statement
27/10/2008 16:17
The Group of Seven major economies said in a joint emergency statement
today that they were concerned about the sharp rise of yen against the US dollar
and other major currencies in the world.
"We are concerned about the recent
excessive volatility in the exchange rate of the yen and its possible adverse
implications for economic and financial stability," the G7 said in a statement
issued by Japan.
The Group of Seven comprises Britain, Canada, France,
Germany, Italy, Japan and the United States. The surprise came after the yen hit
a 13-year high against the dollar and a six-year peak versus the euro last
week.
However, yen barely moved as dealers believed the statement would have
little effect on the market as it stated no measures the world's major economies
would take to bolster dollar against yen.
On Friday the dollar had dropped to
the upper 90-yen level for the first time since August 1995, while the euro slid
below 114 yen to levels not seen since December 2002.
Japan's Finance
Minister Shoichi Nakagawa earlier warned that " excessive" volatility in the yen
exchange rate was destabilizing Asia's biggest economy.
He said the Japanese
government will consider additional measures to stop the trend, but failed to
elaborate how.
Xinhua
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