Wednesday, October 27, 2010

JPY: Yen falls, but the concern is distrust of the other reserve currencies

Through suffering smiles in Tokyo may be evidence that the USD / JPY pair is slowly moving away from level 80, but if you look deeper, the news is mixed. Indeed, since the early months of the yen once again ahead of all the major Asian currencies that exposed glaring too often favorable treatment in the Finance Ministry this year. Without a doubt, the USD / JPY pair was supported by strong night commentary heads Nissan and Tokyo, who argued that the strong yen has been a big problem and that this threatens the future of Japanese production. On the background of such comments is not surprising that the Finance Ministry so excited with respect to force the yen and the reasons for which he sees in the monetary policy of China. Concern in Japan is a global distrust of other reserve currencies, such as the dollar or the euro, and in this case, the yen is regarded as the least worst of the three. Hardly a respite for Japan on the issue of force yen to last long.

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