http://news.bbc.co.uk/low/english/business/newsid_1825000/1825593.stm Monday, 18 February, 2002, 07:33 GMT Bush gaffe hits yen
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A remark by US President George W Bush about "devaluation" in Japan has caused confusion in the currency markets. The yen fell as some traders interpreted the comment as meaning the US favoured a devaluation of the Japanese currency.
Bush aides hastened to clear up the confusion, saying the president - in Japan as part of an Asian tour - had "misspoken". They said his comment had meant to be about Japan's problem of "deflation" - steadily falling prices, which depress spending and investment - not devaluation.
'Upfront'
The need for economic reforms and the weakness of the Japanese yen dominated talks with Japan's Prime Minister Junichiro Koizumi in Tokyo.
Speaking at a joint news conference, Mr Bush said the Japanese prime minister had been upfront about his country's economic problems. Mr Koizumi had given "equal emphasis" to the need for Japan to "clean up its billions of dollars in non-performing loans... and make regulatory reforms", Mr Bush said.
Mr Bush's addition of a third item to this list - the need for "devaluation" of the yen - immediately triggered a drop in the Japanese currency.
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