TOKYO, Jan. 8 (Xinhua) -- Following a Cabinet Meeting on Friday, newly appointed Finance Minister Naoto Kan said at a news conference that the markets should decide currency levels.

    However Kan, who assumed the role of top finance leader on Thursday, following the resignation of Hirohisa Fujii who stepped down due to health reasons, also hinted at currency intervention in saying he has the right to take "some sort of action" on foreign exchange rates if deemed necessary.

    The new Finance Minister also said the government needs to pay heed to companies who calculate exchange rate estimates when doing business.

    "If currency levels deviate sharply from the estimates, that could have various effects on the economy," Kan, also Deputy Prime Minister, said at the news conference.

    Kan called on Thursday for a weaker yen and said he would work with the Bank of Japan (BOJ) to achieve an appropriate exchange rate level, prompting a sharp slide in the currency against the dollar which favors Japan's export-led economy.

    Kan, who led the Democratic Party of Japan (DPJ), from 2002 to 2004, has been a vocal critic of the Bank of Japan (BOJ) and has been a staunch advocator of more pressure being applied on the BOJ to do more to support the nation's economic growth, particularly in this adverse climate, political commentators have noted.

    As to his recent remarks on currency issues, the Finance Minister stated at Friday's news conference that his comments have not had any negative impact on the Japanese business community.

Japan's Kan to face tough questions in parliament as successor to Fujii

    TOKYO, Jan. 8 (Xinhua) -- The appointment of Deputy Prime Minister Naoto Kan to a second post as finance minister after the resignation of Hirohisa Fujii will present the Democratic Party ofJapan (DPJ) with a number of challenges in the coming months as it attempts to get a budget for fiscal 2010 passed in parliament.

    Kan takes over a ministry that in December drew up a budget for fiscal 2010 worth 92.3 trillion yen (1 trillion dollars) -- the biggest in Japan's history. On this point, Prime Minister Yukio Hatoyama on Thursday told media that he has faith in Kan. Full story

Special Report:  Global Financial Crisis