G-7 countries worried about Japanese currency

[October 27, 2008]  WASHINGTON (AP) -- The world's leading industrial countries are worried about the recent sharp rise in the value of the Japanese currency.

The financial ministers and central bank presidents of the Group of Seven major industrial countries issued a joint statement late Sunday in which they expressed their concern about the recent volatility of the yen.

The yen rose to a 13-year high against the dollar in trading Friday, raising concerns in Japan that it could harm its exports of cars and other products because they will now cost more in U.S. markets.

The statement by the G-7 finance officials was released in Washington, Tokyo and other G-7 capitals.

"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," the G-7 finance officials said.

The group reaffirmed its shared interest in a "strong and stable financial system" and pledged to continue to monitor markets and "cooperate as appropriate."

Such a pledge could indicate the possibility of joint intervention in currency markets where governments would sell and buy currencies in an effort to influence their values.

However, the Bush administration has never participated in such an intervention during its nearly eight years in office, preferring to allow the dollar's value against other currencies to be set by markets.

[Associated Press; By MARTIN CRUTSINGER]

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