Japan Markets Sink On Remarks By Mr Yen

Ministry of finance official Eisuke Sakakibara, dubbed Mr Yen for his role in taming the raging yen last year, was quoted as saying that the dollars recovery from its sharp slide last year was about to finish. The dollar has risen 40 per cent since hitting a post-war low of 79.75 yen in April 1995.

Sales intensified later when Sakakibara, director general of the ministrys International Finance Bureau backed up the statements and added fuel to the fire by saying that the economy was stronger than the markets believed.

The dollar fell quickly from a morning high of 113.80 yen to a low of 112.01 yen on aggressive sales spearheaded by overseas operators.

 

Including today, comments from the Japanese side had been voicing caution towards a higher dollar. But on the other hand, US officials have stuck to their policy of seeking a strong dollar, said Takashi Itoda, manager of the international planning department at Dai-ichi Mutual Life Insurance.