JAPAN

Officials Wary of Stronger Yen: Japan’s economic leaders sought to defuse mounting speculation that Tokyo and Washington may seek to boost the value of the yen as one avenue toward trimming Japan’s huge trade surplus. Speaking at regular news conferences last week , the heads of Japan’s most powerful financial ministries said Japan must not seek a stronger yen merely to cut its trade surplus and that exchange rates are decided by economic fundamentals. A stronger yen could pose serious problems for Japanese exporters, who either would have to raise prices or suffer smaller margins on goods priced in other currencies.