Tokyo fails to ease market concerns over yen

By Michiyo Nakamoto in Tokyo

Published: January 8 2010 06:58
Last updated: January 8 2010 17:51

The Japanese government scrambled without success on Friday to calm markets and deflect criticism over comments on the yen by the new finance minister after his calls for a weaker currency sent markets on a rollercoaster ride.

Yukio Hatoyama, the prime minister, Naoto Kan, the finance minister, and other ministers sought to ease concerns but only further roiled the market. The yen, which fell 1.1 per cent following Mr Kan’s comments on Thursday, initially recouped some of its losses on Friday, but was later trading at Y93.77 to the dollar, the lowest level since August.

Mr Hatoyama appeared to chide Mr Kan for suggesting at his first news conference that a weakening to Y95 to the dollar would be appropriate, saying officials should not comment on exchange rates.

“As currency stability is desirable, rapid fluctuations are unwelcome,â€