23.03.2011 - Why Japan's yen move backfired
Soaring Yen Another Disaster for Japan. The appreciating yen created a huge problem for the Bank of Japan. At the post-WWII high of 76 yen to the dollar, Japanese exporters couldn't make any money. For example, Honda Motor (HMC) estimates that it loses 17 billion yen in earnings for each one-yen appreciation in the currency against the US dollar. So the infusion of yen, designed to stabilize Japan's financial system and save its economy, instead threatened to wreck that economy..............................................Full Article: Source
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