TOKYO (AFX-ASIA) - Finance Minister Masajuro Shiokawa said he agrees with the view expressed by White House National Economic Council director Lawrence Lindsey that a weaker yen is acceptable if it is due to structural reform.
"Lindsey's view on the dollar/yen is a correct opinion and I can understand his opinion," Shiokawa told AFX-ASIA in parliament. Asked how he feels about the weakening of the yen after Lindsey's remarks were reported, he said: "The market should determine the dollar/yen level, I think."
The U.S. official told the Nihon Keizai newspaper in an interview that the U.S. can accept a possibly weaker yen if it is accompanied with the reform of Japan's economy.
"If the government of Japan undertakes restructuring and, as a result, the market moves the yen up or down, then we recognise it as a market-driven and not a government-driven decision. So that will be fine," he was quoted as saying.
The senior aide, however, said the U.S. does not think "it is appropriate for Japan to simply depreciate the yen as a way of solving its economic problems."
Separately, Shiokawa told a parliamentary Upper House committee that the Japanese economy may struggle to regain a stronger growth trend.
"I think the Japanese economy will not show a sharp recovery, even after the government's structural reforms are completed in two to three years," he said.
"In the first two to three years of structural reforms, the government will not increase taxes, but focus on cutting administrative spending," he added.