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BoJ intervenes

to bring down yen

TOKYO: The Bank of Japan (BoJ) intervened in the foreign exchange market on Tuesday to bring down the level of the soaring yen against the dollar, traders and an official said.

Monetary authorities "acted in the market," Vice Finance Minister for International Affairs Haruhiko Kuroda was quoted as saying by Nikkei News Service.

The yen rallied to 101.42 against the dollar in early trade before falling sharply to 102.61.

"The dollar apparently recovered on intervention. This was a message that the government does not want a higher yen," Citibank Corp. dealer Takeshi Sato told AFP.

A dealer at Nippon Credit Bank added, "The Bank of Japan came into the market when trading was thin. The sudden increase in trading was characteristic of Bank of Japan intervention".ÑAFP

ADB hikes key rates

MANILA: The Asian Development Bank (ADB) on Tuesday, increased its lending rates for US dollar loans and multi-currency loans for the first half of 2000.

The rate for the dollar facility was raised from 6.24 percent to 6.46 percent per annum while the rate for multi-currency loans was raised from 5.65 to 5.72 percent from January 1, the ADB said in a statement from its headquarters here.

Both rates are adjusted every six months.ÑAFP

China's GDP to grow in 2000

BEIJING: China's economy will grow by around 7.0 percent this year, about the same as 1999, the government forecast on Tuesday. The Minister in charge of State Development and Planning, Zeng Peiyan, said the government was confident China could maintain a gross domestic product growth rate similar to last year's 7.1 percent, the official Xinhua news agency reported.ÑAFP

Philippines exports rise

MANILA: Philippine merchandise exports rose 18.8 percent year-on-year in November to 3.073 billion dollars from 2.586 billion dollars last year, the national statistics office said on Tuesday. Exports in the 11 months to November rose 19 percent to 32.089 billion dollars from 26.973 billion dollars in the same period last year, the office said in a statement.ÑAFP

Japan to propose

currency basket

TOKYO: Japan will propose pegging the currencies of emerging nations to a basket of major units such as the yen, the dollar and the euro, a major economic daily said on Tuesday.

The finance ministry plans to present the idea to a meeting of finance ministers and central bank governors from the Group of Seven major economic powers, to be held here on January 22, the Nihon Keizai Shimbun said.

The ministry believes a peg to a basket which reflects the rates of several currencies would enhance stability in Asian currency markets, which suffered from speculation-driven fluctuations since 1997, it said.

Japan will also call for cooperation among private banks in averting financial crises and tightening regulations to combat fraud in financial transactions, the daily said.ÑAFP