OKYO (AFX-ASIA) - Prime Minister Junichiro Koizumi said it is desirable that dollar/yen should stabilise without any excessive gain or fall.
"I think that dollar/yen should stabilise without falling or rising excessively," Koizumi said at the ruling Liberal Democratic Party's headquarters in a briefing ahead of the upper house polls on July 29. "The recent rise in the dollar may be reflecting the weakness of the Japanese economy but I hope that dollar/yen stabilises so as to keep the Japanese economy, which is facing difficulties, growing," he said.
Asked how he feels the current strong dollar is affecting the US economy, he said that "forex fluctuations have as much positive impact as negative."
Koizumi added that he will maintain the current cabinet if the ruling party coalition wins the upcoming upper house elections.
"I think it is too early to consider compiling a supplementary budget for the year to March 2002," he said, when asked if the government will resort to additional stimulus measures in the face of a stockmarket crash.