10/12/2010, 00.00
Send to a friend

Dollar drops to 15 year low against yen

The U.S. currency fell yesterday to 81.37 yen, then stabilized at 82.07. The Japanese Minister of Finance says it will take "decisive action" on the market, selling yen and buying dollars. The International Monetary Fund without a strategy to balance the tensions between the currencies.

Tokyo (AsiaNews / Agencies) - The U.S. dollar reached its lowest value against the yen in 15 years, creating new tensions in the relationship between the currencies. Yesterday, the dollar fell to 81.37 yen, then recovered to 82.07. To date the lowest value of the dollar had been 79.75 yen, recorded in April 1995.

The dollar weakened after the release of US employment figures, less positive than expected. Yoshihiko Noda, the Japanese Minister of Finance, said the nation is ready to take “bold action,” including intervention, to combat gains.

Last month, the Central Bank of Japan intervened in the market by selling yen and buying dollars in an attempt to weaken the value of the yen against the dollar. A strong yen makes Japanese exports more expensive and reduces profits.

The IMF's member countries failed to agree on a concrete plan to tackle global imbalances at multilateral meetings over the weekend. Japan escaped any overt criticism of its yen-selling policy, despite some commentators saying it was weakening its currency to gain an advantage in export markets. Noda defended Tokyo’s actions saying that the intervention of the central bank last month was necessary because the strengthening of the yen did not reflect the real economy.

Send to a friend
Printable version
See also
China is in good shape, but must not underestimate the global crisis
Sony cuts 16,000 jobs, fails to restore market confidence
Asian stock markets fall, doubts about recovery in China
Beijing reaffirms the urgent need to replace the dollar with a global currency
Applause, but some concern over Fed move


Subscribe to Asia News updates or change your preferences

Subscribe now
“L’Asia: ecco il nostro comune compito per il terzo millennio!” - Giovanni Paolo II, da “Alzatevi, andiamo”