This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.
You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/8445006.stm
The article has changed 3 times. There is an RSS feed of changes available.
| Version 1 | Version 2 |
|---|---|
| Japan's Kan calls for weaker yen | Japan's Kan calls for weaker yen |
| (29 minutes later) | |
| Japan's newly appointed finance minister Naoto Kan has called for a weaker yen in order to aid the recovery of the Japanese economy. | Japan's newly appointed finance minister Naoto Kan has called for a weaker yen in order to aid the recovery of the Japanese economy. |
| Speaking the day after his appointment, Mr Kan said it would be "nice" to see the currency weaken. | Speaking the day after his appointment, Mr Kan said it would be "nice" to see the currency weaken. |
| His predecessor, Hirohisa Fujii, who stepped down for health reasons, was criticised for tolerating a strong yen, which hurts Japan's exporters. | His predecessor, Hirohisa Fujii, who stepped down for health reasons, was criticised for tolerating a strong yen, which hurts Japan's exporters. |
| Japan is currently battling the threat of deflation and a large public debt. | Japan is currently battling the threat of deflation and a large public debt. |
| Mr Kan said he would seek to work with Japan's central bank on the issue, prompting speculation that he might order official intervention. | Mr Kan said he would seek to work with Japan's central bank on the issue, prompting speculation that he might order official intervention. |
| "I will deal with it seriously and work hard to bring it to the appropriate level, considering the impact that foreign exchange has on the Japanese economy," Mr Kan told reporters. | "I will deal with it seriously and work hard to bring it to the appropriate level, considering the impact that foreign exchange has on the Japanese economy," Mr Kan told reporters. |
| An appropriate level would be about 95 yen to one US dollar, he said, making a rare public comment by a government minister on the currency's desired value. | An appropriate level would be about 95 yen to one US dollar, he said, making a rare public comment by a government minister on the currency's desired value. |
| ANALYSIS Roland Buerk, BBC News, Japan Japan's recovery is frail, made vulnerable by worsening deflation. | ANALYSIS Roland Buerk, BBC News, Japan Japan's recovery is frail, made vulnerable by worsening deflation. |
| Exporters, still suffering a hangover from the global recession, are being laid low by the strong yen. | Exporters, still suffering a hangover from the global recession, are being laid low by the strong yen. |
| There are fears in government of a possible return to recession, which it cannot afford as it faces upper house elections in July. | There are fears in government of a possible return to recession, which it cannot afford as it faces upper house elections in July. |
| The other big issue is the national debt. | The other big issue is the national debt. |
| It is pushing towards 200% of GDP, by far the highest in the industrialised world. class="" href="/2/hi/asia-pacific/8445811.stm">Read more | |
| The yen dropped against the dollar on foreign exchange markets to 92.8 following his remarks, from 92.2 before he spoke. | The yen dropped against the dollar on foreign exchange markets to 92.8 following his remarks, from 92.2 before he spoke. |
| The yen has dropped steadily since reaching a 14-year high against the dollar of 85 in November. | The yen has dropped steadily since reaching a 14-year high against the dollar of 85 in November. |
| Japan has not intervened in the currency market for several years and Mr Kan's predecessor, Mr Fujii, had spoken against weakening the yen to help exporters. | Japan has not intervened in the currency market for several years and Mr Kan's predecessor, Mr Fujii, had spoken against weakening the yen to help exporters. |
| Mr Kan was appointed to the post on Wednesday, after Prime Minister Yukio Hatoyama reluctantly accepted Mr Fujii's resignation. | Mr Kan was appointed to the post on Wednesday, after Prime Minister Yukio Hatoyama reluctantly accepted Mr Fujii's resignation. |
| Mr Fujii, 77, has been treated in hospital for high blood pressure. | Mr Fujii, 77, has been treated in hospital for high blood pressure. |
| He had told reporters he was exhausted after weeks of wrangling within Japan's governing coalition to finalise the budget. | He had told reporters he was exhausted after weeks of wrangling within Japan's governing coalition to finalise the budget. |
| The change of faces in such a key post is being seen as a severe test for Mr Hatoyama - who came into power in September after nearly 50 years of conservative rule and is already suffering from falling ratings. | The change of faces in such a key post is being seen as a severe test for Mr Hatoyama - who came into power in September after nearly 50 years of conservative rule and is already suffering from falling ratings. |
| Mr Fujii's departure has added to uncertainty about the new government's ability to handle the economy. | Mr Fujii's departure has added to uncertainty about the new government's ability to handle the economy. |
| Parliament reconvenes the week after next with the budget at the top of the agenda. | Parliament reconvenes the week after next with the budget at the top of the agenda. |
| Double dip risk | Double dip risk |
| Mr Kan has headed a national strategy unit that sets fiscal priorities but he has nothing like the budgetary experience of Mr Fujii, says the BBC's Roland Buerk in Tokyo. | Mr Kan has headed a national strategy unit that sets fiscal priorities but he has nothing like the budgetary experience of Mr Fujii, says the BBC's Roland Buerk in Tokyo. |
| The question for bond markets is whether he will be able to resist pressure for more government spending, especially if Japan's economy sags towards a double dip recession, our correspondent says. | The question for bond markets is whether he will be able to resist pressure for more government spending, especially if Japan's economy sags towards a double dip recession, our correspondent says. |
| The 63-year-old Mr Kan's previous experience in government is as a health minister in the mid-1990s. He is also currently the deputy prime minister. | The 63-year-old Mr Kan's previous experience in government is as a health minister in the mid-1990s. He is also currently the deputy prime minister. |
| Analysts are questioning whether he will be able to stem Japan's deflation and massive government debt. | Analysts are questioning whether he will be able to stem Japan's deflation and massive government debt. |
| The world's second largest economy is currently recovering from its worst recession in decades, with public debts worth about 200% of annual economic output. | The world's second largest economy is currently recovering from its worst recession in decades, with public debts worth about 200% of annual economic output. |