Gov't frets over currency volatility+

TOKYO, Sept. 28 Kyodo - The yen's sharp appreciation Monday triggered government concern about volatility in the currency market with Finance Minister Hirohisa Fujii calling the rise ''one-sided'' and the industry ministry studying the potential impact on Japanese exports and corporate incomes.

The U.S. dollar briefly fell to 88.23 yen in early Tokyo deals, its lowest
level in nine months, before recovering later in the day. It was quoted at
89.56-58 yen at 5 p.m.
Fujii told reporters in the late morning, ''Exchange rate stability is
desirable,'' adding, ''The yen has been rising somewhat one-sidedly.''
The yen has continued to rise following repeated comments by Japan's new
finance minister that he opposes currency market intervention to weaken the yen
and support Japanese exporters, dealers said.
Also Monday, Economy, Trade and Industry Minister Masayuki Naoshima ordered
ministry officials to look into any negative fallout on domestic industries
from the yen's recent strength.
Yosuke Kondo, a parliamentary secretary of the industry ministry, said Naoshima
senses the necessity to ''closely watch'' the situation, adding that the
government recognizes that ''volatility (in the currency market) is unfavorable
not only for companies...(but also) stock markets'' and people's lives.
==Kyodo