Thursday, August 26, 2010

The World Economy... - 26/08/2010

Japan May Intervene To Curb The Sharp Rise In Yen

Japan’s policymakers hinted on 25 August that they may intervene in the currency market for the first time in more than six years to curb the surging yen and ease the already loose monetary policy. The sense of crisis is growing in Japan
after the US dollar, which was at as high as 95 yen in early May, sank to an intraday low of 83.58 yen on 24 August, nearing its 1995 record low of 79.75 yen, before rebounding slightly. Japan policymakers fear the strong yen could hurt
the country’s export-reliant recovery and worsen deflation. Although currency intervention could help, the results had not been satisfactory in the past especially if it is not a concerted effort by the major central banks in the world.



The World Economy... - 26/08/2010

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