text: Japan's authorities seen seeking to rein in dollar. George Nishiyama 
   TOKYO 1996-12-06 
   Comments by Japan's tight-lipped central bank chief and an influential top bureaucrat are further signs that the nation's authorities want to keep the dollar at current levels, market sources said on Friday. In a rare expression of a view on currencies by the Bank of Japan (BOJ) governor, Yasuo Matsushita was quoted in Japan's leading economic daily on Friday as saying that he sees no further, immediate fall in the yen. This followed a widely watched television appearance late on Thursday by Eisuke Sakakibara, a high-ranking Finance Ministry official, who denied he had said he wants to guide the dollar lower to between 108 and 110 yen. But many in the market thought Sakakibara's real intentions lay elsewhere, and took more notice of his comments about the U. S. government's stance on the dollar, dealers said. " I think his views on (U. S. Treasury Secretary Robert) Rubin's comments were indeed what he himself thinks about the dollar, " said Hank Note, chief dealer at Sumitomo Bank. Asked about Rubin's comment that a strong dollar was in U. S. interests, Sakakibara said the remark does not necessarily mean the United States supports a stronger dollar. " It's a strong dollar, not stronger. In that sense, the comments are not pointing to a certain direction, " he said. " It shows that Sakakibara is not for a stronger dollar either, " said Sumitomo's Note. Takao Sakoh, first vice president at Union Bank of Switzerland in Tokyo, said: " Maybe a dollar at 104. 50 yen is not acceptable (to Sakakibara), but it may be okay at the current level, at the lower end of 112 yen. " 
   Market participants have kept a close eye on Sakakibara, chief of the ministry's International Finance Bureau, as a comment he made in November after the dollar hit this year's high of 114. 92 yen pushed the currency down sharply. He had said then that the market's view on Japan's economy was too pessimistic and that he believed it was stronger than the market thought. Dealers have come to refer to 115 yen as the " Sakakibara ceiling " for the dollar following the remark. Adding to the comments by " Mr Yen ", as Sakakibara is known for his prominence in the currency market, was BOJ governor Matsushita's remark. " The recent level of the yen exchange rate has been stable, and it does not appear to be moving towards a further depreciation of the yen immediately, so import prices are likely to stabilise at current levels, " Matsushita said in an interview with the Nihon Keizai Shimbun. " The fact that he touched on the issue of inflation triggered by import prices shows that the BOJ does not want a further depreciation of the yen, past 115 yen, " said Yasuhito Kawashima, chief forex manager at Toyo Trust & Banking Co. Some said the central bank may have been concerned a weaker yen would lead to unfounded pessimism about Japan's economy. " There was concern that foreign investors may sell Japanese stocks if the dollar goes above 115 yen. The BOJ does not want the yen's weakness to lead to pessimism over the economy, " said Taisuke Tanaka, market strategist with Credit Suisse in Tokyo. Senior BOJ officials have separately said financial markets' views on the economy have been too negative. " I realise there are negative views in the markets about the impact of the consumption tax hike and drop in public spending, but the markets appear to be exaggerating the magnitude of the negative impact, " a senior BOJ official told Reuters on Friday. The consumption tax is due to raised in April from three to five percent.
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