16.11.2011 - Japan struggles to get a grip on its currency
The Japanese central bank, the Bank of Japan (BoJ), has been locked in a seemingly futile battle to weaken its currency, the yen. A strong yen is seen as damaging to Japanese exporters by reducing their competitiveness overseas and eroding the value of repatriated earnings. But despite its past failures, it is likely that the BoJ will intervene again. The question for traders is when, and by how much? On 31 October, the BoJ intervened to weaken the yen for the third time this year, with finance minister Jun Azumi declaring that he would continue to intervene until he was satisfied. It is estimated that the initial move cost the BoJ 40 trillion (327bn), and a further trillion in the three days following that............................................Full Article: Source
Print