SUMITA SAYS HE DOES NOT EXPECT FURTHER DOLLAR FALL
Bank of Japan governor Satoshi Sumita
said he does not expect the dollar to remain unstable and fall
further.
    He told a Lower House Budget Committee in Parliament that
the Bank of Japan would continue to cooperate closely with
other major nations to stabilize exchange rates.
    The central bank has been keeping extremely careful watch
on exchange rate movements since last week, he said.
    He said the dollar would not continue to fall because of
underlying market concern about the rapid rise of the yen.
    Sumita said the currency market has been reacting to
overseas statements and to trade tension between Japan and the
U.S. over semiconductors.
    The yen's tendency to rise will prevent Japan from
expanding domestic demand and undertaking necessary economic
restructuring, he said.
 Reuter
