1. However, West Germany was reluctant to spend heavily on the foreign exchanges to support the yen, because of its likely inflationary impact. 2. Bonds began the session down when the dollar dropped against the Japanese yen because investors feared the Japanese central bank would sell dollars to support the yen. 3. Following the meeting a finance ministry official quoted Mitsuzuka as saying a plunge of the yen is undesirable and Japan is prepared to support the yen. 4. Higher Japanese rates support the yen by increasing the allure of yen-denominated assets. 5. His comment prompted traders to push up the dollar on expectation Japanese authorities will not move to support the yen. 6. If there are no positive surprises, more intervention might be needed to support the yen. 7. It can intervene in the currency markets to support the yen, as it did in June, or jawbone the Japanese government to stimulate its economy. 8. Keeping the dollar from rising was concern Japanese officials may talk up the yen or ask the central bank to step into the market to support the yen. 9. Moreover, Note said expectations the government may take actions to arrest the plunge in land prices has been working to support the yen. 10. So far, his trip has not resulted in any U.S.-Japan joint statement for coordinated efforts to support the yen. |