Strong figures will boost expectations of higher growth in consumer spending in the U.S.. That will heighten expectations of at least two more rate hikes from the Fed, supporting the dollar.

I do not think the ministry will actually interfere in he markets. But other central banks such as Korea's may do so, helping the dollar rebound.

With the huge amount of money that Japanese sent abroad, repatriation flows could have a major effect on the dollar-yen through March.

The dollar remains firm, as the absolute U.S. interest- rate advantage still continues to exist. Rates hikes by the BOJ are a long way off.

Growth was lower than expectations because of inventories -- which will need to be rebuilt -- while moderating employment costs will make it less costly for firms to hire additional workers. The still-strong level of wage and salary should buoy consumption.

The results are generally in line with expectations. But growth in net profit in 2006 will not be as (strong) as in 2005.