Japan must avoid yen fall from lost of trust over its finances - Kono

Excessive yen fall may trigger unwelcome inflation - Kono

  
Image used for illustrative purpose. Japanese yen notes are piled up after counting at a bank during a photo opportunity in Seoul October 8, 2010.

Image used for illustrative purpose. Japanese yen notes are piled up after counting at a bank during a photo opportunity in Seoul October 8, 2010.

REUTERS/Lee Jae-Won
TOKYO, Sept 23 (Reuters) - Japan's government and central bank must work closely together to avoid triggering an unwelcome yen fall caused by a loss of market trust over the country's finances, Taro Kono, a key contender in the ruling party leadership race, said on Thursday.

"If market trust over Japan's finances is lost, that could trigger a yen fall," Kono said. "If yen falls proceed, import costs would rise and cause inflation," he said in an online debate among the candidates in the race.

(Reporting by Leika Kihara; Editing by Giles Elgood) ((leika.kihara@thomsonreuters.com; +813-6441-1828; Reuters Messaging: leika.kihara.reuters.com@reuters.net))


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