CCTV.com - CNTV English - CCTV News

Japanese yen climbs against USD

08-04-2011 14:29 BJT

Watch Video

Play Video

With the dollar continuing to fall, the Japanese currency has hit record highs, and analysts say intervention to tame the yen is now becoming more likely.

Washington has finally reached a compromise agreement which has averted an unprecedented default, but the threat of a US credit rating downgrade continues to weigh on market sentiment.

The yen's climb to near record highs against the dollar has heightened the possibility of the Japanese government stepping in to weaken it, and for the central bank to follow suit with additional monetary easing.

The Yen fell from Monday's peak and is trading at around 77.3 to the dollar.

The Japanese government says its continuing strength is hurting an economy struggling to recover from the March the 11th earthquake.

Yoshihiko Noda, Japanese Finance Minister, said, "If the strong yen continues, it will unmistakably impact some industries. I want to closely analyze the potential impact. I am in contact with many different people about this matter."

Some exporters are also feeling the burden.

Takahiko Ljichi, senior managing officer, Toyota, said, "We are now considering using an overseas purchasing base to raise the import of components. We will use various kinds of measures to enhance the capability of resisting yen's appreciation"

Toyota reported a more than 100 billion operating loss for the first quarter, its first deficit in two years.

Bank of Japan Governor, Masaaki Shirakawa, says that at the next rate review on Thursday and Friday, the central bank will make an appropriate decision on monetary policy by carefully examining how recent yen rises will affect the outlook for the nation's economy and prices.

 

Related stories

Editor:Liu Fang |Source: CNTV.CN

Hot Videos view more

The celebrations are still continuing as the victorious coach, Joachim Loew, has been honored for his achievement in his hometown of Freiburg.
Germany coach Loew honored in hometown of Freiburg

Chinese men´s national team continued its preparations for next year´s Asian Cup, as they managed a one-all draw against visitors Jordan during a football friendly in Harbin, the capital city of Northeast China´s Heilongjiang Province.
China held to 1-1 draw by Jordan

The defending world champs came into the contest with a perfect 6-and-oh record, but they would be in for a tough first half before opening things up in the second.
USA beat Slovenia 119-76 in quarter-finals

Hot Stories more

UK authorities believe killer of James Foley is a British national

Across the UK the hunt is on for James Foley’s killer, who authorities believe is a British national. As Richard Bestic reports from London, Prime Minister David Cameron cut short his summer break to lead his government’s response.

Israeli war jets renews Gaza strike as truce talks stalled

Three Palestinians were killed and 40 others wounded in the intensive Israeli war jets´ airstrikes on the Gaza city on Tuesday night, shortly before an end of a 24-hour ceasefire in the Gaza Strip,

Missouri police arrest dozens after violent night

As the protests in the town of Ferguson, Missouri turned violent with police facing ´heavy gunfire´ from some ´criminal elements´, cops fired tear gas, stun grenades and arrested 31 demonstrators on Monday night.

Picture in news more

More Video News

Choose TV Program