Japanese yen is higher today against the US dollar, a situation that has many companies in Japan increasing their efforts to shift overseas. Yen continues to strengthen, in spite of efforts by Japanese leaders to keep the currency weak against the dollar.
Right now, Japanese manufacturers are trying to figure out how they can remain competitive in a world where the Japanese yen simply won’t remain lower against the US dollar. A weaker yen offers a competitive advantage in the world of global trade — an advantage that has been slipping away.
As a result, many companies are moving their manufacturing operations overseas at an increased pace. While Japanese leaders scramble to figure out how to weaken the yen (multiple interventions in 2011, and a low interest rate, haven’t done the trick), it continues to to show strength against the US dollar.
Right now, the yen is up against the US dollar, as well as up against the Great Britain pound. Euro, though, is higher against the yen today as a degree of eurozone optimism is introduced into the markets. For now, it looks as though Japanese yen strength — at least against the dollar — is here to stay.
At 15:02 GMT USD/JPY is lower, down to 76.8500 from the open at 76.9830. EUR/JPY is higher at 103.9539, up from the open at 103.6260. GBP/JPY is lower at 121.2560, down from the open at 121.2845.
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