US Declares WAR on Japan..reuters

..Wednesday June 12, 7:52 PM EDT
TOKYO, June 13 (Reuters) - Twenty-four U.S. House lawmakers urged Treasury Secretary Paul O'Neill on Wednesday to press Japan to stop manipulating foreign exchange rates, a Japanese news agency reported.

"We ask you to strongly communicate to the government of Japan the U.S. government's disapproval of direct Japanese intervention in currency markets," they wrote, according to Jiji Press.

"We believe these interventions are unacceptable and have been effective in stopping the markets' moves to weaken the dollar," said the House lawmakers including Small Business Committee Chairman Donald Manzullo.

Manzullo earlier told a hearing at the Small Business committee that many of small businesses and farmers in the U.S. have been hurt by what he sees as an overvaluation of the dollar.


Compounding the problem, Japan intervened in the forex market to prevent the yen's appreciation against the dollar.

"This move by Japan is a blatant attempt to manipulate the market," he said.

Japanese monetary authorities have intervened in the currency market at least four times since late May and are estimated to have bought over two trillion yen ($15.97 billion) worth of dollars for yen.

The lawmakers also asked O'Neill to convey the U.S. disapproval at a meeting of the Group of Seven finance ministers to be held in Halifax, Canada, on June 14-15, the report said.


©2002 Reuters Limited.



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