Wednesday, 25th August 2010
In Business In Japan,
Yen hits 15-year high
The yen has reached a 15-year high against the US dollar as the Japanese currency remains strong on the international market.
It remains unclear if Japan's government will now intervene to limit the yen's value in order to ensure stability.
Yoshihiko Noda, the Japanese finance minister, explained that the currency situation would continue to be monitored "extremely closely, with grave concern" but he refused to confirm or deny any possible policy plans.
Markets saw the US dollar slip to 84.17 yen yesterday – the lowest since 1995. The yen has also reached a nine-year high against the euro.
The major concern for Japanese businesses is that a stronger currency can lead to an increase in the cost of exports to other nations and could push up prices – possibly undermining the global economic recovery.
Recent figures revealed that the Chinese economy has now overtaken Japan in terms of growth during the second quarter of the year.
Written by Susan Ballion.
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