Measures needed to avoid double-dip recession: Japan PM

TOKYO: Japan's Prime Minister Yukio Hatoyama said on Thursday that the government must take measures to avoid a double-dip recession after the US dollar tumbled to a 14-year low against the Japanese yen.

"We must take measures so that the economy will not fall into a double-dip" recession, said Hatoyama, without specifying what measures his government may take to boost the world's second largest economy.

The premier stressed that "rapid and drastic movements in foreign exchange are not desirable" but added that the day's fluctuations were due mainly to the fall of the dollar rather than a rise of the yen.

The greenback briefly dropped to 86.28 yen, its lowest level since it traded at 84.92 yen on July 7, 1995.

A stronger yen threatens the competitiveness of Japanese exporters.

Japan, Asia's biggest economy, sank into its worst post-war recession in the second quarter of 2008 as the economic downturn hammered demand for its cars, electronics and other exports, and has gradually rebounded this year.