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2010/08/24
Kan, Sengoku comment on yen rate
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On August 24, Prime Minister Naoto Kan spoke to reporters at the Prime Minister’s Office. In response to a question regarding the sudden strengthening of the yen and the fact that the Nikkei Index had fallen to below 9000 yen, he said, “Sudden changes in the exchange rates are undesirable. I would like to watch this closely. I will consider economic measures having heard a variety of opinions from both the corporate and labour sections.

Kan also stated that he had set up a special team to deal with employment issues faced by new graduates, and said that the team “is doing what they are supposed to be doing.”

Earlier that same day, Chief Cabinet Secretary Yoshito Sengoku held his regular press at the Prime Minister’s Office. He was also asked about the state of the Nikkei Index and the dollar rate, which at one stage had reached 84 yen to the dollar, to which he replied, “There is absolutely no difference in the perception of the markets and the world economy in Europe, the US, Japan and Asia, and so I would like to observe the movement of the markets closely, including whether speculators are operating or not.” With regard to the introduction of additional economic measures, he said that opinions regarding this were likely to be firmed up to some degree at a meeting of the DPJ’s Policy Research Committee executive due to be held on August 26. Sengoku added that Kan had already met with Minister of Finance Noda and Minister of State for Economic and Fiscal Policy Arai on the previous day, August 23. He said that the government needed to establish what kind of proposal would be submitted by the party on August 26, and to ensure that a framework was in place to engage in a flexible response.

Sengoku was also asked to comment on reports which stated Kan had said he would not “dissolve the Diet [for a general election] for the next three years”, saying, “Probably I would guess that” this comment was an expression of Kan’s perception that considering the situation in which Japan is said to have lost one or two decades to economic recession, it would be necessary to settle down and engage in policies and system reform.

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