Thursday, 4th August 2011
In Business In Japan,
Bank of Japan drives yen down in bid to help economy
The Bank of Japan (BOJ) has intervened to weaken the country's currency, because the strength of the yen against some European currencies was harming Japan's export market.
According to various news providers, the national bank sold around one trillion yen - worth around £7.7 billion - yesterday (August 3rd) and also loosened regulations on monetary policy.
Yoshihiko Noda, who is the Japanese finance minister, noted that the country has taken the decision, despite the fact that it may harm the financial services sector, to help the economy as a whole.
"Japan is just in the process of recovering from a natural disaster so these currency moves are certain to have a negative impact on the economy and financial markets," he said.
European currencies such as the pound and the euro are suffering due to the economic downturn, which has also left the FTSE 100 on track to be at its lowest ebb since September 2010.
Written by Kimberley Homer
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