Thursday, 22nd July 2010
In Business In Japan,
Yen trading at seven-month high
The Japanese yen is currently trading at a seven-month high against the US dollar following an announcement from the Federal Reserve.
Chairman of the reserve Ben Bernake said that the outlook for the state of the US economy is "unusually uncertain" which sent demand for the yen as a refuge currency up.
The yen is also gaining against other currencies, such as the euro and sterling.
A strong yen is actually bad news for some companies in Japan, as it can make investors and customers wary of buying Japanese goods. Japanese firms doing business abroad could also suffer reduced profits as they get less for their money when it is transferred back into yen.
Commenting on the US situation, head of market economics and strategy at ANZ National Bank in Wellington Khoon Goh told Business Week: "Markets hate uncertainty and the reaction in global markets is to sell risky assets."
Written by Susan Ballion.
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