Geithner tells Japan: lay off forex intervention

Some Forex news for you. Some Treasury secretary designate Timothy Geithner Wednesday issued a veiled warning to Japan and other US trading partners against meddling in the currency markets.

"I believe that it's very important for the United States and for the global economy that our major trading partners operate with a flexible exchange rate system, in which market forces determine the value of exchange rates," he said.

"I think that's good economic policy," Geithner told the Senate finance committee at his confirmation hearing, when asked about indications that Japan may be poised to launch its first forex intervention in nearly five years.

As the dollar slumps in value, the soaring yen has made Japanese exports less competitive and eroded repatriated earnings.

Taken from google news.

Two weeks ago, Bank of Japan governor Masaaki Shirakawa warned the yen's rise was hurting Asia's largest economy and said he was looking at measures to cope with it.

Japan's government has repeatedly hinted it could order the central bank to intervene on the market to bring down the yen.