Excerpt from: Forex Analysis
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| January 22, 2009 | | As yen gains against the dollar in currency trading, Japanese government issues warning |
Not too long ago, there was talk that the Japanese government might interfere in forex trading. The talk died away briefly, but it appears to be back.
With the yen making gains against the U.S. dollar in currency trading (recently reaching yet another 13-year high), the Finance Minister, Shoichi Nakagawa, said that he was keeping an eye on the situation, and that the government was thinking about what might be necessary.
The strong yen on the FX market has not been especially good for the Japanese economy. It has taken a toll on the exports that support the Japanese economy, making them more expensive. Combined with the fact that consumers around the world are spending less, the recession has only deepened in Japan, with no end in sight.
Right now, it appears that Japanese officials are mostly talk, hoping that warnings of possible intervention will bring the yen lower in currency trading. I'm not sure that Japan really wants to intervene, since many of the G7 nations are pressuring against it.
 | Topic Tags: currency trading, dollar currency trading, exports, forex intervention, forex trading, FX market, Japanese yen currency trading, yen FX market | |
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