Fujii Says Japan to Contact U.S., Europe If Needed as Yen Jumps

 Nov. 27 (Bloomberg) -- Japanese Finance Minister Hirohisa Fujii said he may contact U.S. and European officials to act on currencies, amid concern the yen's surge to a 14-year high will hamper the economic recovery.

"I will establish contact if necessary," Fujii told reporters in Tokyo today, when asked whether the government has raised the issue of intervening in currency markets. Asked if the Group of Seven nations will consider issuing a statement, Fujii said: "We will do what is necessary."

Japan may sell yen for the first time in five years as the currency's gain past 85 to the dollar threatens earnings at Sony Corp. and Toyota Motor Corp. and deepens deflation in the wake of the nation's worst postwar recession. Renewed concern the global recovery will falter after Dubai sought a debt rescheduling has enhanced the allure of the yen as refuge.

"At a time when the recovery is expected to be gradual, an appreciating yen is of extreme concern," said Yoshiki Shinke, a senior economist at Dai-Ichi Life Research Institute in Tokyo. "I think the government will take some kind of action."

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