Shiokawa Confusion Update :



Minister Shiokawa has once again confounded the markets by stating ..

"A recent survey of corporations said a dollar range of 125-135 yen was favourable, and I think that is obvious. (The current rate) is moving a bit beyond that,"



"The dollar at 125-135 yen would be a good area for the Japanese economy."



"Stock prices have been falling not because of concerns over earnings, but because firms were misbehaving"



...after having implied that a fall to 115 was anticipated.



He has now clarified those comments , stating that they were intended to impress that the dollar should NOT be allowed to fall that far. Other comments , reported by Reuters on July 14th , confirm that O'Neill is still promoting the US 'strong dollar' position and 3+ percent GDP growth in the near term. Shiokawa acknowledged that allowing the dollar to weaken considerably would dampen Japan's growth prospects , which have been upgraded for the fourth time in five months.