Asia Warns Global Currency Markets

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Asia Warns Global Currency Markets

Tue September 23, 2003 01:09 AM ET
By Tamawa Kadoya

DUBAI (Reuters) - Asian policymakers fired warning shots at global currency markets on Tuesday, seeking to stem strong gains in the region's currencies after a weekend meeting of rich countries called for more flexible exchange rates.

Japan's top financial diplomat, Zembei Mizoguchi, speaking in Dubai on the sidelines of a meeting of the International Monetary Fund, said the recent surge in the yen was too rapid and partly due to speculative buying.

"The market is overreacting," he said, referring to the weekend Group of Seven statement that called for exchange rates to be set by market forces.

"I don't think (the situation) will last for long," he said.

A senior official at South Korea's Commerce Ministry also weighed in, telling reporters that the won's recent rise could deal a major blow to exports, one of the few bright spots in the recession-hit economy. China, meanwhile, said its currency regime, under which the yuan is kept around 8.28 per dollar, was an internal affair...>>MORE

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