Friday, 13th August 2010
In Business In Japan,
Japan's strong yen explained
Over recent weeks, the strength of the Japanese yen has seen stocks and shares in the country fall as investors continue to steer clear of the sturdy currency - but how did it become so strong in the first place?
This week, the yen rose to a 15-year high against the US dollar and this was down to a number of reasons, said Reuters.
The news source said that a drop in US Treasury yields, combined with a "perception among market players" that the Federal Reserve may end up putting "aggressive" monetary easing measures in place and issues to do with seasonal fund repatriation have all been part of the reason.
Market analysts have recently been expressing concern that there seems to be a slowing down in the global economic recovery.
The recession which hit Japan as a result of the financial crisis was its worst since the end of the second world war and many of its key industries - including vehicles and electronics - were badly affected.
Written by Mark Smith