Gov't to accelerate compilation of measures to counter yen's rise+

TOKYO, Aug. 21 Kyodo -
The Japanese government is speeding up the compilation of emergency economic measures in the face of the yen's persistent strength, as highlighted by its rise to a postwar high against the U.S. dollar on Friday, government sources said Sunday.
The government had planned to include measures to cope with the strong yen in the third extra budget for fiscal 2011. But it is now considering bringing forward their implementation to September by using reserve funds from the principal budget for the current fiscal year, the sources said.
Also the Bank of Japan will study additional monetary easing, they said.
In New York on Friday, the dollar fell below 76 yen and touched a new postwar low of 75.95 yen, prompting lawmakers from both the ruling and opposition blocs to seek a new set of countermeasures.
Foreign exchange policy has also become a major point of dispute in the election of a new leader of the ruling Democratic Party of Japan and successor to Naoto Kan as prime minister. The DPJ presidential election is to be held later this month.
Japan intervened in the currency market earlier this month to stem the yen's rise, which hurts Japan's export-oriented economy.
In addition to the intervention, the government has now resolved to approve other measures soon, such as providing low-interest loans to mid- and small-sized companies to support employment, promote the spread of energy-saving technology and to prevent the hollowing out of industries, the sources said.
DPJ Secretary General Katsuya Okada told an NHK program Sunday, ''It is an idea to use the reserve fund (of the principal budget) to tackle the yen's appreciation.''
The government will also encourage companies to take advantage of the strong yen by urging them to ramp up purchases of overseas assets and corporations, the sources said.
Meanwhile, the Bank of Japan is expected to discuss further monetary easing at a policy board meeting scheduled for Sept. 6 and 7. But it is likely the central bank will convene the policy board earlier if the yen rises further against other major currencies or stock prices continue trending markedly downward.