Japanese yen is trading mixed today, but officials still see the relative strength of the currency as a problem to tackle. Continued strength from the yen sent Japanese stocks plunging today, and there are concerns that the economic recovery will be slowed by the latest developments.
Yen is trading mixed today after seeing a surge in strength on global market volatility this week. The yen has pulled back a little against some currencies, thanks to comments from Japanese officials. Concerns about the impact of a strong yen on Japan’s economic recovery are coming out.
Recently the Bank of Japan announced negative interest rates, and that had almost no impact on the yen. Japanese Finance Minister Taro Aso warned that policymakers stand ready to “act appropriately” when it comes to currency markets if the yen gets too strong. This helped talk the yen down against some currencies, but there is still enough strength in the yen right now that the Nikkei tumbled.
A strong yen makes Japanese exports less desirable, and Japan relies on a weak currency to spur international buying. With the current relative yen strength, things are strained, and policymakers are scrambling.
At 15:51 GMT USD/JPY is up to 112.9450 from the open at 112.3470. EUR/JPY is down to 127.0500 from the open at 127.2410. GBP/JPY is up to 163.3140 from the open at 162.6200.
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