Fri Sep 24 2010 21:09:27 GMT+0530 (India Standard Time) by Angela Kaye Mason ( Leave a comment )
Sep 24 (THAINDIAN NEWS) Speculation has risen today that Japan has began to take actions which weakens it’s currency as the Japanese yen dipped in value against the American dollar.
The Bank of Japan intervened last Wednesday in order to stem it’s currency that had jumped to an all time high for the past fifteen years against the US currency. They had not done anything like this in six years.
With the Japanese yen so strong, the demand for imports had weakened, which left Japan concerned about the recovery of the Japanese economy. The economy of Japan is the second largest in the world.
Traders who were located in Tokyo today, however, stated that the huge drop on yen might have been due to intervention, even though it had not been expected for the authorities to do so. This is because the levels had not reached the point to demand intervention as of yet.
