	japan has no plans to cut discount rate bank of japan sources said the bank has no plans to cut its discount rate they told reporters that there was no pressure on japan during the group of seven g meeting here yesterday to lower its discount rate they added that they themselves do not feel any need for a cut at all chancellor of the exchequer nigel lawson told reporters earlier today that some countries those with strong currencies might have to cut  rates the bank of japan sources also said that it was too soon to call the g pact a failure the central bank sources were commenting on the dollar s renewed tumble in new york and tokyo which was sparked by remarks by u s treasury secretary james baker that the dollar s fall had been orderly they said the market must have misinterpreted baker s comments because he was referring to the dollar s fall since the plaza agreement in september over a long time span not the currency s recent movements they added that the foreign exchange markest seem to seize on anything to use as an excuse to drive the dollar one way or the other the bank of japan sources said the u s is putting more weight on the dollar yen rate in terms of judging market stability than on other currencies throughout the g meeting japan pointed to the dangers that would arise from a further dollar fall because it would reduce the flow of japanese capital to the u s hurting the u s and world economies they said in february and in march of this year japanese investors reduced their purchases of u s treasury bonds the sources said each country in the g britain canada france italy japan the u s and west germany has a different view about currency stability the bank of japan sources said this is because the overall foreign exchange market is a triangle of dollar yen european currencies yen and dollar european currencies at the time of the louvre agreement european countries did not want the yen to weaken against their currencies so they did not object to the yen strengthening they said reuter 
