Dollar drops to 15 year low against yen
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.