World news
Japan in 'war of nerves' against yen speculators
Japan kept up verbal threats of further yen-selling interventions to weaken the unit on Tuesday, with its finance minister saying Tokyo is in a "war of nerves" against speculators.
Finance Minister Jun Azumi said he would make "appropriate decisions" on the need for additional market action if speculators try to push the yen higher.
Monday's yen-selling intervention came after the unit hit a fresh post-war high versus the dollar. Japan has been under domestic pressure to act as the strong currency erodes exporters' repatriated profits and makes domestically-produced goods less competitive, undermining a post-March earthquake recovery.
"We are waging a war of nerves" with the currency market, Azumi said at a regular news conference.
"We will closely monitor developments (in the currency market) and make appropriate decisions at appropriate times."
Japan's government intervened Monday in the currency market for the third time this year, helping the dollar rise by roughly four yen to 79.55 yen.
Traders estimate the latest intervention involved dumping a single-day record of about seven trillion yen ($92 billion) for dollars.
The currency issue is expected to emerge at this week's meeting of leaders of the Group of 20 industrialised and emerging economies in Cannes, France.
But the move may raise questions from Japan's global trade partners, amid concerns it could undermine efforts to persuade China to allow a more flexible yuan.
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