As debt crisis last outbreak, investors sell the euro and other risky assets accelerated, prompting increased demand for the yen’s safe-haven assets, while the Fed is likely to introduce a new quantitative easing, the dollar tumbling, the yen exchange rate has continued to rise. This makes Japan’s export industries, particularly in the automotive industry, experience “cold”, in the case of currency fluctuations in disorderly, the Japanese authorities may take decisive measures to intervene in the yen exchange rate.
Asian session Thursday, the yen touched 78.45 against the dollar, the four new high, almost equal to 317 Japanese yen exchange rate reached the highest level since World War II 76.24. Under such circumstances, the strong appreciation of the yen will weigh on the Japanese economy.
Japan Automobile Manufacturers Association (Japan Automobile Manufacturers Association) President Toshiyuki Shiga (Toshiyuki Shiga), said the strong yen, the current “unacceptable.” He warned that if the yen continued strength of Japanese companies in overseas weaken the competitiveness of domestic may harm the automobile industry jobs.
Japanese market participants complained that the government’s response is too slow, have pointed out Japan’s financial institutions, governments and the Bank of Japan yen for no response, simply “man-made.” Market participants believe that Japan’s Finance Minister Yoshihiko Noda (Yohihiko Noda), Chief Cabinet Secretary said Yukio Ueno branch will pay close attention to market trends, but only as a concerned but no.
Toshiyuki Shiga said on Tuesday that the current shortage of electricity much discussion, although very important, but is still the most important impact on the industry appreciation of the yen. He said, “If the exchange rate reached 80.00 yen, the level of production in Japan, then, can not profit, the situation is really grim. “
He said the yen’s appreciation coupled with South Korea and the EU will implement a free trade agreement (FTA), growing into a bitter struggle the Japanese automotive industry, car sales competition, it is not because the quality of input, but blocked in other ways, which makes Toshiyuki Shiga chagrin.
However, Japan’s former top currency affairs officer Takatoshi Kato (Takatoshi Kato) said on Thursday debt crisis in Europe and under the influence of the U.S. debt ceiling debate and foreign exchange fluctuations in the case of disorder, the Japanese authorities may intervene in currency markets to curb the yen exchange rate appreciation.
financial reach Yoshihiko Noda of Japan said yesterday that the recent trend of yen appreciation has unilateral, he is closely watching market trends. Japan last sold yen resistance liters in 318 days and today the Group of Seven (G7) with hand coordination intervention. Japanese authorities have unilaterally in the 20109 yen selling, to suppress the yen from rising, the action for the first time since 2004.
Takatoshi Kato, said the foreign exchange market, such as disorderly and threatening economic growth prospects in Japan have a choice in any case intervention.
now 70-year-old Takatoshi Kato said Japan must also observe the Asian currency fluctuations, to decide whether to intervene in Asia is Japan’s largest source of trade. Asian currencies surged against the yen will hurt Japan’s economy.
enjoyed a trade surplus of Japan, making Japan less dependent on foreign capital, the yen often in the economic and financial market turmoil on the occasion, a safe-haven assets and a strong appreciation. The yen exchange rate appreciation to reduce the competitiveness of Japanese exports overseas.
Global Exchange authorized reproduced
