Economy and Business Votes

Archive for the ‘Currency Market’ Category

Things are not quite right for the Japanese economy, at least with regard to the currency market. The situation is complex, and among others one of the most troubling is the growing strength of the yen. In a situation of concern, the Japanese government has decided to intervene the currency market for the first time since 2004.

At this time the dollar depreciation was evident once again in the Japanese currency market. To fall to 82.88 yen, the dollar and reached its lowest level in fifteen years, which forced the Japanese government and the Bank of Japan to intervene in the market to make the yen lost strength.

After ordering a sell yen and buy dollars, the dollar topped 85 yen, a move that also is far from the relative levels between the two currencies before the crisis. In fact, in the summer of 2008, the dollar traded at 109 yen, 23% more than the value of yesterday.

This decision has been taken due to the significant dependence of Japan’s exports. Yoshihiko Noda, the Finance Minister said that this move is intended to curb “excessive fluctuations in exchange rates, and were not ruled out future interventions if the yen strengthened again.

A big influence in this movement have had major Japanese companies, who suffer the increase of exports and cheaper imports that take place in the Japanese market.