19 June 2001, 11:27  DOLLAR FALLS 1/3 YEN AFTER COMMENTS BY BOJ'S HAYAMI

LONDON, June 19 - The dollar shed a 1/3 of a yen after the Bank of Japan governor said on Tuesday intervention was needed if forex rates moved too rapidly and Japan should not drive the yen lower because of the impact on its neighbours.
BOJ chief Masaru Hayami's comments unnerved a market already wary of intervention to support the yen following a rapid fall in the Japanese currency in the past few days. The yen hit one-month lows against the dollar earlier on Tuesday.
Hayami also said further easing steps now might harm the Japanese economy.
The dollar fell to around 123.35 yen , according to data, from around 123.60 before Hayami's comments. It had pared its losses to 123.42/47 by 0707 GMT.
The euro also weakened by around a quarter yen to levels below 106 more than half a yen below four-week highs set on Monday.

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