Posted On: March 31, 2011
The yen has more or less stabilized after skyrocketing to its highest valuation since the end of World War II in the wake of the tsunami and earthquake that caused widespread devastation in Japan according to Bloomberg.
Masafumi Yamamoto, chief currency strategist at Barclays Bank Plc in Tokyo told the news service that the government's actions to curb the outsized growth of the yen were well-focused.
"The currency movements after the joint intervention show this was an unusually effective intervention. It was effective because it halted the yen's advance with smaller amounts of money than the one in last autumn," he said.
Bloomberg reported that the G-7 recently released a joint statement pledging to help the Japanese economy as much as possible, keeping an eye on foreign exchange markets in order to limit the damage that could be caused by a further surge.
Four of the six reactors at the Fukushima Daiichi plant will likely have to be decommissioned, the government announced recently, raising concerns about radioactive environmental contamination. That announcement's effect on the country's economy remains to be seen, however.
Category: Industry News
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