Sunday, October 10, 2010

Geithner didn't comment on Japanese intervention


By Leika Kihara
WASHINGTON | Sat Oct 9, 2010 6:01pm EDT

WASHINGTON (Reuters) - Japanese Finance Minister Yoshihiko Noda said Treasury Secretary Timothy Geithner did not make any specific comments about Tokyo's currency intervention when they met on Saturday.

"I explained that issue quite elaborately (at the Group of Seven dinner meeting) yesterday, so I didn't explain it again today," Noda told reporters after the bilateral talks held on the sidelines of the IMF meetings.

Noda said he instead explained Japan's economic stimulus plans and measures to boost potential growth. He declined to comment on whether there were any discussions on currency issues, including Japan's intervention and the thorny issue of China's yuan reform.

Tokyo intervenened in the currency market for the first time in six years on September 15, as the yen's steady rise against the dollar threatened to derail an export-reliant recovery from Japan's worst recession in decades.

Investors remain on full alert for further intervention by Japan after an unexpected drop in U.S. payrolls data pushed the dollar to a fresh 15-year low against the yen on Friday.

While last month's solo intervention drew criticism from some European policymakers, the United States has refrained from openly voicing discomfort over the move.

Noda had explained the rationale behind Japan's intervention at the Group of Seven working dinner on Friday.

Noda had said he believed he gained the understanding of Japan's G7 counterparts that last month's action was aimed at countering excessive currency moves, and that Tokyo was not about to conduct a prolonged, massive intervention aimed at driving down the yen to a certain level.

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