Japanese Leaders Warn on Yen Strength
Japanese yen is on the rise again, heading higher as concerned Forex traders look for safe haven assets. The yen is considered one of the safer currencies, and with all of the turmoil and uncertainty in Europe, it is one of the currencies of choice.
However, Forex traders shouldn’t drive up the price of the yen too high, warns monetary policy leaders in Japan. Finance Minister Jun Azumi is warning that leaders are carefully watching the yen, and that driving the price too high is speculative on the part of Forex traders.
This warning is seen as an indication that policymakers are keeping a close eye on the yen, and that it is very possible that they will intervene to keep the yen weaker. A weak yen is preferable to the Japanese, since it gives them an edge in exports, and helps the economy.
Most don’t view Azumi’s statements as idle threat. Japanese leaders have been known to intervene in the currency market to weaken and the yen, and there is a good chance that they will force the yen lower if it gets too strong.
At 12:22 GMT USD/JPY is lower at 78.7255, down from the open at 79.0775. EUR/JPY is down to 97.6580 from the open at 97.7925. GBP/JPY is down to 122.0970 from the open at 122.3950.
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Earlier News About the Japanese Yen:
- Yen Gains on Woes of Europe, Flat vs. Dollar (2012-05-29)
- Japanese Yen Remains Stronger Against European Currencies (2012-05-25)
- Bank of Japan Inaction Helps Yen (2012-05-23)
- Yen Slides as Fitch Downgrades Japan (2012-05-22)
- Yen Falls vs. Majors as Traders Anticipate Intervention from BoJ (2012-05-16)