G7 alarmed over energized yen

The finance ministers from the Group of Seven industrialized nations today issued an emergency statement that warned against the surging value of the Japanese yen. The yen's recent growth against the dollar and euro has made the cost of Japanese exports more expensive. “We reaffirm our shared interest in a strong and stable international financial system,” G-7 finance ministers and central bank chiefs said, in a joint statement. “We are concerned about the recent excessive volatility in the exchange rate of the yen and its possible adverse implications for economic and financial stability. We will continue to monitor markets closely, and cooperate as appropriate.” The value of the yen increased to 93.23 yen per dollar from 94.32 on Oct. 24 and from 105.32 per dollar on Oct. 3, when the U.S. Congress passed the $700 billion bailout package of the U.S. financial system. The statement didn't provide any help to Japan's Nikkei 225 index, which fell 486.18 points, or 6.4%, to close at 7,162.90. Since Oct. 3, the index has shed 3775.24 points, or 35%.