Japan to curb 'one-sided' yen moves through forex intervention

Tokyo

EXCHANGE rate friction between Japan and the United States appeared to flare anew on Tuesday when Japan's finance minister Taro Aso issued a strong threat of action to curb yen strength by means of foreign exchange market intervention, while acknowledging "differences of view with the US" over currencies.

After Mr Aso's statement to parliament that Japanese authorities would intervene if necessary in order to correct "one-sided" moves in the Japanese currency, the yen retreated quite sharply, dropping at one point in Tokyo to near 109 to the US dollar compared with an 18-month high of around 105.6 last week.