/www.fxserver.com/ TOKYO - Japanese Finance and Economics Minister Heizo Takenaka said on Thursday that the country should not have a weak currency as a policy target.
"The yen will weaken through the use of the existing monetary easing policy," Takenaka said on a local television programme." A weak yen target is not necessary."
Takenaka's comments, echoing ones he made last Sunday, are the latest in a week filled with contradictory comments from Japanese officials over the strength of the currency.
The government is concerned that the yen is threatening to dampen exports, one of the few reasonably bright spots in the fading economy, adding to the stock market's woes as firms prepare their books for the fiscal year ending next March.
Several Japanese officials, including Finance Minister Masajuro Shiokawa, had expressed concern this week over the rise in the yen, while others had said it was less of a problem.
The dollar hiccuped briefly after Takenaka's comment but recovered to trade around 121 yen by 1500 GMT.
Takenaka also repeated his call for the Bank of Japan to be more active in monetary policy in the fight against the deflation that is hurting Japan's economy. The central bank should also actively discuss inflation targeting, he said. Bank of Japan Governor Masaru Hayami is a vigorous opponent of inflation targeting.
Takenaka said the government's reform policies were correct, but it will take time before the effects are seen and are reflected in a rise in stock prices.