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LONDON - THE Japanese yen is rising 'too fast' and currency speculators must be careful, the country's prime minister Yasuo Fukuda said in an interview published on Tuesday. Speaking to the Financial Times, Mr Fukuda said that while he did not object to a long-term appreciation of the currency: 'In the short term, yen appreciation would certainly be a problem.' 'Any kind of sudden change in exchange rates would not be desirable.' He added: 'Speculative movements need to be kept in check. What I am saying is: 'Be careful, so that it (intervention in the currency markets) will not happen'.' Mr Fukuda insisted, however, that in the long term, 'a rising yen should not be rejected, but I emphasise long-term'. The yen rose to 109.13 yen to the US dollar on Monday, dropping below the psychologically important 110 level for the first time since May 2006. Mr Fukuda also said that he did not think Japan would be badly affected by the US subprime mortgage crisis, when compared to some other countries, telling the business daily: 'There certainly could be a negative turn in the world economy and, since Japan is very much involved in global trade and finance, doubtless Japan will also be affected.' 'But I don't think Japan will be affected particularly badly compared with other countries.' Mr Fukuda, who took office in September, hinted that he would pursue reforms to lower financial barriers to foreign investment: 'There are numerous major obstacles standing in the way ... We need to fight to remove those obstacles.' -- AFP
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