The Japan Chamber of Commerce and Industry urged the Finance Ministry on Thursday to prevent a further rise in the yen, saying foreign-exchange policy is one of the few policy options Japan can take to boost its economy.
"With economy-bolstering steps in the tax and fiscal areas limited, maintaining a level foreign-exchange rate is an important step that is left," a ministry official quoted a JCCI member as saying in a meeting with Finance Minister Sadakazu Tanigaki.
Tanigaki was quoted as telling Nobuo Yamaguchi, chairman of the group, and its top officials that the ministry's position is still to take "timely and appropriate action against speculative movements."
The dollar briefly dropped below the 106 yen line Wednesday in London and New York for the first time since Jan. 7. It later recovered ground, apparently due to intervention maneuvers by Japanese monetary authorities, dealers said.
The business group also urged the ministry to implement major tax reform steps only after the country overcomes deflation and achieves nominal economic growth of 2 percent, the official said.
Although the group did not specify which tax steps they were referring to, they were believed to include tax hikes, including possibly raising the consumption tax, according to ministry officials.