Yen drama likely to enter new phase at G-7 meeting

Tokyo

THE drama of the yen, which has seen the Japanese currency move erratically up and down in recent weeks touching off frictions with Japan's partners, is expected to enter a new and critical phase next week when Japan hosts the summit of G-7 finance ministers and central bank governors.

Japan hopes to secure the understanding of its G-7 partners at the meeting on the need for (possibly concerted) intervention to smooth yen fluctuations and to prevent the currency from being pushed back up to recent levels that threatened to undermine the Japanese economic recovery.