2 October 2001, 08:51  Shiokawa - Govt still cautious over dollar movement even at 120 yen

TOKYO (AFX-ASIA) - Finance Minister Masajuro Shiokawa said the government is still cautious about the dollar's movements even after its recent appreciation to above the 120 yen level. "Even now, we are still alert to the dollar/yen's moves. I feel the dollar may fall if we stay off our guard, even momentarily," Shiokawa told a regular press briefing. "If we see signs of a drastic fall in the dollar/yen, we are ready to intervene in the market unilaterally, based on our sole judgement," he said. Meanwhile, vice finance minister Haruhiko "Kuroda told me after his US trip that the administration appreciates Japan's recent efforts to stabilise the dollar," Shiokawa added. "I am planning to propose again that G7 countries should cooperate in stabilising the US currency and providing ample liquidity to cope with the events after the terrorist attacks," he said. The G7 meeting of finance ministers and central bank governors will be held this weekend. Shiokawa said the Japanese government will stick to its 30 trln yen limit on new government bond issuance, though within this ceiling some adjustments may be made. "There is a possibility that we will have to reorganise the current fiscal year's budget to cope with demand for additional spending from ministries and agencies," he said. Shiokawa said the government will provide support for the domestic airline industry after the terrorist attacks. "The government today decided to offer 2 bln usd insurance support for the airline industry," he said.

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