Japan to keep close contact to RI forex

Japan to keep close contact to RI forex

TOKYO (AFP): Japanese Finance Minister Hiroshi Mitsuzuka said Monday his ministry would maintain contact with authorities in the Philippines, Indonesia and Malaysia on foreign exchange turbulence.

"I am aware of the situation in the Philippines, Indonesia and Malaysia," Mitsuzuka told a regular news conference.

"Regarding these countries, we will keep in close contact, and orchestrate co-operation," he said.

Mitsuzuka had been asked whether his ministry would offer the same assistance it promised Thailand to support its baht.

The minister agreed in talks Friday with Thai counterpart Thanong Bidaya and Bank of Thailand governor Rerngchai Marakanonda "to cooperate closely in foreign exchange markets," including possible Japanese intervention to support the baht "when and if necessary," a senior official said.

The Thai officials arrived here Wednesday on a visit to brief Japanese government and business leaders on the Thai economic situation after Bangkok floated the baht July 2, which triggered a 20 percent drop against the dollar.

Malaysia's ringgit, the Philippine peso and Indonesia's rupiah have also been subjected to heavy speculative attack.

Speculators focussed on the rupiah Monday, sending it down 5.9 percent to 2,650 to the dollar, breaking the previous record low of 2,503 struck at Friday's close.

The peso opened 1.4 percent lower Tuesday against the dollar, traders said, quoting it at 28.40 to the greenback, compared to the previous closing rate of 28.00.