Tokyo - Seven of the world's leading industrialized
countries expressed concern Monday over the yen's strength against
other major currencies and pledged to cooperate in stabilizing the
global financial system.
'We are concerned about the recent excessive volatility in the
exchange rate of the yen and its possible adverse implications for
economic and financial stability,' said an emergency statement
released by the Group of Seven (G7), which consists of Britain,
Canada, France, Germany, Italy, Japan and the United States.
The statement was released on Japan's request, Japanese Finance
Minister Shoichi Nakagawa said after the yen soared to a 13-year high
against the dollar.
The member nations said they had a 'shared interest in a strong
and stable international financial system' and promised to 'continue
to monitor markets closely and cooperate as appropriate.'
Japan was expected to take emergency measures to stabilize its
currency.
A high yen hurts manufacturers in export-oriented Japan. It makes
their goods more expensive abroad and reduces their overseas
earnings. As a result, Japanese firms have cut their earnings
projections for this year.
At midday (0300 GMT) Monday, the US dollar was quoted at 94.02-07
yen, down from Friday's 5 pm quote of 95.14-17 yen, while the euro
traded at 118.13-23 yen, down from 120.52-56 yen.
USA
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