Japan's new Finance Minister Naoto Kan attends a meeting at the Finance Ministry in Tokyo January 7, 2010. Kan was named on Wednesday to replace 77-year-old Hirohisa Fujii, who stepped down for health reasons. (Xinhua/AFP Photo) Photo Gallery>>>

    Kan calls for weaker yen

    TOKYO, Jan. 7 (Xinhua) -- Japan's Deputy Prime Minister Naoto Kan, who is set to become finance minister, said Thursday that he would like to see a weaker yen.

    "I will work with the Bank of Japan to get the yen to appropriate levels while paying attention to the effects on the economy that currency can cause," Kan said.

    He cited 95 yen as being the appropriate level for the yen to trade against the dollar. Currently, the yen trades at around 92 yen against the dollar. A weaker yen means that Japanese products become cheaper, and as an export economy, this is essential for Japan. Full story

   Yen slides after Kan says wants it to weaken

   TOKYO, Jan. 7 (Xinhua) -- The yen slid against the dollar on Thursday after new Japanese Finance Minister Naoto Kan said he wanted it to weaken more, stirring talk that the country may be more inclined to intervene to stem any sharp rise in the yen.

   "It's a strong message, particularly for overseas players," said Hideaki Inoue, chief foreign exchange manager at Mitsubishi UFJ Trust and Banking Corp. "Speculation is growing that the government will be more likely to intervene in the market" if the yen rises sharply.

   The dollar bought 92.78-80 yen at 5 p.m., compared with 92.27-37 yen in New York and 92.11-13 yen in Tokyo at 5 p.m. Wednesday. Full story