Although the euro has been the focus of recent days because of concerns related to the European periphery, the additional interest was the steady decline in the yen. On the background of the situation in the shares and capital flows, which attract Asian currencies, we could expect that the yen will rise against other major currencies, but instead, the Japanese currency has faced difficulties. Partly this can be explained by the realization that China has reduced the proportion of its available Japanese government bonds in the last couple of months, after large-scale demonstration of procurement in the first half. Over the last week the yen has lost about 2% relative to other Asian currencies, and this result is clearly pleased with the Finance Ministry. If it goes on, the next intervention by the Bank of Japan is not inevitable.
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