Japan’s Foreign Minister ready to devalue the yen

JAPAN may be forced to devalue its currency after the yen hit a record high of 75.78 against the US dollar on Friday. The Foreign Minister Jun Azumi has warned that "decisive action" might be needed to avoid damaging export figures, after which the yen fell in Monday trading.

Azumi's remarks came as Japan reported export growth of 2.4 per cent in September compared to a year ago, following a month of growth in August.

Japan's exports, which were hit hard by the earthquake and tsunami in March, could suffer from a strong yen, which would make them more expensive and less competitive in overseas markets compared to Asian rivals China and South Korea.

Azumi's comments have been taken as a warning to speculators who may have contributed to the yen's rise, although the government intervened in currency markets as recently as August, when it spent a record sum of money trying to weaken the yen.

Read a full report at BBC News. ·