The new Japanese Finance Minister Naoto Kan has made it clear he will work with the Bank of Japan (BoJ) to bring the yen to levels "appropriate." Indeed the strength of the Japanese money causes a strong impact on the economy, heavily oriented to exports.
In his first public appearance after nomination by the premier wanted Yukio Hatoyama, following the resignation on health grounds Hirohisa Fujii, Kan said that "it would be nice if the yen weakened a bit 'more."
The yen, he noted, has begun to give ground in late November, immediately after the dreaded default Dubai, "but I hope that the fix goes on a little '."
Kan, who has retained the post of deputy has set out to share the report with 95 yen to the dollar, considered "favorable by many companies" in Corporate Japan.
In other words, the weak currency would help large groups active in the exports of the Rising Sun by increasing levels of competitiveness in international markets.
The debut of Japanese neoministro Naoto Kan marks a sharp turnaround from the previous Minister Hirohisa Fujii who, boasting a solid background in economics, had kept very conservative on issues currency to the point that even trigger misunderstandings with markets. The point of letting the yen appreciate against the dollar, which fell to the lowest of the last 14 years in lower part 84 to October-November.
Then, thanks to the change of tone, and even on the assumption of direct intervention in the markets, the dollar recovered ground on the Japanese currency. But the recovery has not yet been sufficiently explained the Minister Naoto Kan.
Article Source: ActuaFreeArticles.com
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