Japan should look out for possible effects of the yens recent sharp rise on Japans economy as growth remains slow the governments Economic Planning Agency said in a monthly report submitted to cabinet ministers. EPA officials told reporters the underlying trend of the economy is firm but growth is slow due to sluggish exports. Customs-cleared exports by volume fell 4.9 pct month-on-month in February after a 2.8 pct fall in March. The government must take adequate economic measures to expand domestic demand and stabilise exchange rates in a bid to ensure sustained econonic growth the report said. The report made a special reference to the yens renewed rise and its effect on the economy the officials said adding the agencys judgement of current economic conditions has not changed since last month. The EPA said last month Japans economy is beginning to show signs of bottoming out conditional upon exchange rates. The dollar fell below 139 yen in early trading today - a post-war low.
JAPAN AGENCY URGES WATCH ON YEN RISE EFFECTS