Bank Of Japan Moves To Stop Dollar Plunge

Jun 23, 2002

TOKYO, June 24 (Kyodo) The Bank of Japan (BOJ) intervened in the foreign exchange market Monday to boost the U.S. dollar from the lower half of 121 yen because the dollar's plunge could be bad for the Japanese economy, financial authorities said.

''Recent rapid movements of the dollar-yen exchange rates in the markets could have undesirable implications for the Japanese economy and the world economy,'' Finance Minister Masajuro Shiokawa said in a statement.

''In this context, we have taken appropriate action today in the foreign exchange market. We will continue to closely monitor the market and take appropriate action as necessary,'' he said.
The BOJ's move on behalf of the government is its fifth intervention since late May aimed at arresting the appreciation of the yen to prevent it from hampering the Japanese economy, which is showing signs of an export-led recovery.

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