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What should gold''s friends think of a Newmont takeover of Barrick?

Section: Daily Dispatches

London Times says Japan's currency intervention is over

a href=http://www.reuters.com/newsArticle.jhtml?type=topNewsamp;storyID=4679937...

LONDON, March 29 (Reuters) -- Japan's 150-billion-pound
($273 billion) campaign to weaken the yen and strengthen
the dollar has officially come to an end, the Times newspaper
reported, citing sources at the Bank of Japan.

The currency intervention campaign, which has provoked
criticism in Washington and deep concern in London, is
thought by Japanese officials to be no longer necessary
because the country's economic recovery is gathering
strength, the Times reported in its March 29 edition.

BOJ sources said that they would intervene in the markets
only when there was extraordinary volatility, but made
clear that the unprecedented dollar purchases of the past
seven months were formally over, the paper reported.

The BOJ and Japan's Ministry of Finance will no longer buy
dollars even to smooth out the sort of sudden price spikes
that have prompted intervention in the past, it added.

quot;Even if the market shows volatility, we believe that things
are not so fragile now,quot; the BOJ sources said, in what the
paper describes as an exclusive briefing.

quot;We have reached the point where we are confident that
the Japanese recovery no longer depends on export
strength ... the interventions have served their purpose,quot;
the sources added.

The dollar was last quoted at 105.35 at 5:30 p.m. EST.

The intervention drive to support the falling dollar against
the yen began in earnest last September and has left
Japan with paper trading losses of more than 50 billion
pounds, the paper said.

The end of intervention has apparently been brought
about by Toshihiko Fukui, the BOJ governor, who has
restored confidence in the Japanese economy since
his appointment a year ago and won plaudits from
international financial authorities for his deft monetary
management, the paper said.

* * *

Ministry of Finance says intervention continues

a href=http://www.reuters.com/newsArticle.jhtml?type=topNewsamp;storyID=4680183...

TOKYO, March 29 (Reuters) -- Japan's Ministry of
Finance said on Monday it would continue its policy of
currency market intervention, shrugging off a British
newspaper report that Japan would stop its intervention
campaign.

quot;We have been intervening all along based on the Boca
Raton statementquot; by the Group of Seven countries quot;that
excessive volatility and disorderly movement are
undesirable -- and we will continue to do so if necessary,quot;
a senior MOF official told Reuters.

quot;There seems to be a lot of talk about a policy change in
March or April, but there is no change in our intervention
policy,quot; he said.

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