Bush gaffe hits yen

US - 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 invest