South Korean banking governor criticises Japan’s currency sale

SOUTH Korea’s central bank chief has poured scorn on Japan’s currency intervention, saying he was sceptical that Japan will succeed in stemming the yen’s strength without the help of other major currency issuers.

“When it comes to Japan, there’s no doubt it can’t be achieved through a single country’s effort,” Bank of Korea governor Kim Choong-soo told reporters, asking for his comments to be reported during the weekend.

Japan sold an estimated 1.8 trillion yen (£13.4bn) on Wednesday in the country’s first currency market intervention in six years in an attempt to stem the yen’s strength.

However the unilateral move has drawn criticism from around the world.

The country’s prime minister Naoto Kan remained defiant last week, talking up the possibility that the government could step into the currency market again.

“Policy coordination is necessary between countries, such as between China and Japan,” said Kim.

South Korean finance minister Yoon Jeung-hyun also said on Wednesday that Japan had not contacted his ministry about possible coordination on Tokyo’s currency intervention.