The Japanese Yen has been rising in value and "The governor of Japan's central bank has not ruled out further interventions in the currency markets in its fight to control the rising value of the yen".
The Bank of Japan is considering selling large amounts of the Yen so that its value falls.
This high rise in the value is hurting many exporters as their profits are being squeezed.
"Mr Shirakawa said the BOJ would closely watch the impact the strong yen is having on the economy".
He also stated that the BOJ is ready to take action if it is necessary.
1 comment:
Japan has been severely hit by the recession. The BOJ has been intervening in the economy and lowering interest rates for some time but there does not seem to be an improvement in the economy. However the new plans to intervene in the currency market might be helpful since it will help exporting firms.
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