Yen Hot News

Yen Hot News

With the yen traded near a 15 month high levels against the u.s. dollar this week, the concern was further spread especially bad impact towards competition in the export sector and could also slash the value of the company's operational profit brought from outside in the country. While import prices if weakened, then their impact will hurt the trend already achieved by Japan's Central Bank (of the BoJ) to raise inflation.

In addition, the weakening outlook revenue growth society makes the consideration of the country against the growth of wages being lower.

"As has been agreed by countries of the G-7 and G-20, a very abrupt market movements are certainly not desirable," said Finance Minister of Japan, Taro Aso, onFriday (12/02) this morning in Tokyo cited by Bloomberg. "The movement has occurred ' inconsiderate ' in the forex market. We will continue to keep an eye on the forex market with urgency and are ready to customize the steps if necessary. "

Government Intervention?

ASO declined to comment on the question of whether the Government of Japan willintervene the market even though it acknowledged that Japan's economicfundamentals are still strong enough and will establish coordination with G20countries at a meeting in Shanghai later.

Ministry of finance Japan has indeed been repeatedly resolved the problem of the movement of the yen this week. Masatsugu Asakawa, head of currencies in Japan, although the Ministry of finance Japan markets were off yesterday, even had time towarn of the presence of pergreakan alleged speculative.

However, komenta-comments that Japan does not give officials swept up in the movement of the USD/JPY this Friday. The strengthening Yen remained stubborn in the range of 112.37 per U.s. dollar pda at 9:53 am Tokyo time this morning.