politics

Finance minister says yen is 'strongly overvalued'

31 Comments

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31 Comments
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Intervention is like giving money away to people

1 ( +2 / -1 )

well I have no idea what this says-but I would look at the Catholics.

-4 ( +1 / -4 )

ie: buy US dollars now, the yen will be forced back up, you'll make a few cents on the dollars.... ala the government giving money away.

-1 ( +1 / -2 )

Yes, good luck with your FX trading. I'm not sure Japan can do much on its own for this, or they already would have... I think the yen will be stuck near the current rate for a while, and there is little change that America will ease up giving the current tea party policies to sinking your own ship back in America...

1 ( +3 / -2 )

I dont think Japan has the power to influence this much, it wud only be a blip, short term, small amount & then revert

Another example of Japans waning influence

-1 ( +3 / -3 )

ie: buy US dollars now, the yen will be forced back up, you'll make a few cents on the dollars.... ala the government giving money away.

I am not sure about that. YEN may be going up to 70 yen/$$ by end of this year.

QE3 is not completely ruled out yet. Please read the economic data released today.

1 ( +2 / -1 )

Yen is bound to stay strong for a while. There is not much the J-government can do to prevent it.

Even if they try to intervene, they need to sell Yen and buy another currency and in return make that currency stronger. Which country wants to see its currency get stronger in these times?

-1 ( +0 / -1 )

The economies of the EC, US and Japan are in a race to see which one tanks first. Eventually, like Weimar Germany, they'll be printing yen notes on one side only (to save ink), in ¥1,000,000,000 denominations, bundles of which we will carry to the 7-11 in a wheelbarrow in order to buy a sweet roll and carton of milk. Americans will be in a similar predicament, but use their almost worthless greenbacks to buy 9mm ammunition.

-1 ( +2 / -3 )

I do not buy dollars much any more to invest in the states as there is nothing to invest in.

When I repatraite Dollars back to Japan eventually, I want a much weaker Yen.

1 ( +1 / -0 )

The US will need to intervene sooner than later forced by OPEC which pegs their currency to the dollar. They will threaten to release the present transaction currency status dominated by the US dollar in which case the US will fall to a dismal economic state that no nation would care about. When this happens no matter how the Republicans and the Democrats unite for a resolution everything would be too late.

0 ( +3 / -3 )

Japan should gave up her trillion USD for a promise to raise the JPY to at least 100 yen against the dollar.

0 ( +0 / -0 )

TumbleDry; Japan should gave up her trillion USD for a promise to raise the JPY to at least 100 yen against the dollar.

They probably would if it is going to help the matter but there is no use in providing more supply when there is little demand. The only thing Japan could do is to buy up some more dollars not release them.

2 ( +2 / -0 )

SamuraiBlue: Sorry. I meant just getting rid of it. Not giving it back.

0 ( +0 / -0 )

I don't speak Queen's English or anything, but seems to me "strongly overvalued" is kind of oxymoronic.

0 ( +1 / -1 )

I'll say the yen is strongly overvalued! Things were great when a dollar bought 240 yen. Ah, those were the days...

4 ( +5 / -1 )

My sympathies to those earning in USD and paying in JPY.

3 ( +3 / -0 )

Japan should orchestrate their very own bankruptcy. Even with USD being so cheap, nobody buys it. Well, maybe only FX players but since they have no impact on the real market... Anyways, not Japan's fault. This is why the BOJ is so reluctant to intervene. 77.30... come on... Real market players that bought JPY at that rate are going to have a bad hangover...

0 ( +1 / -1 )

TumbleDry; Japan should orchestrate their very own bankruptcy.

Even that may not work. You need to remember that Japan's bonds were lowered twice by the rating agency and went through a massive earthquake not to mention a nuclear catastrophe this year and the yen is still at it's record highs.

The only thing I can think of to remedy the situation is for the government to issue a limit on international trade of Yen like the PRC.

1 ( +1 / -0 )

So is now the time to send money home??

0 ( +0 / -0 )

yes, but is the sky still blue?

-1 ( +0 / -1 )

tmarie, that day was last Friday. I would do it tomorrow if I were you.

0 ( +0 / -0 )

Thank you, thank you, Mr Nixon.

For getting rid of the gold standard.

Making the rich richer and the poor poorer.

The American dream!

0 ( +0 / -0 )

So is now the time to send money home??

This is a global site, I cannot tell you anything unless I understand where is your home and where you are at. How long are you planning to stay there? There are many financial tools available hedge against appreciating Yen.

Also you need to check with your local government (US) for a rule and regulation travelling with cash more than $10,000.

0 ( +0 / -0 )

Why do you say that Foxie?

0 ( +0 / -0 )

My sympathies to those earning in USD and paying in JPY.

Plus, these people need to evaluate their employment contract today.

0 ( +0 / -0 )

tmarie, because I was a financial advisor in that sector

0 ( +0 / -0 )

Even if they try to intervene, they need to sell Yen and buy another currency and in return make that currency stronger

I hope J. Gov does not intervene. That's just a droping water on hot burning BBQ charcoal, and it just evapolates Japanese tax payers money. It only feeds currency traders for profit. There is nothing Japan can do.

0 ( +0 / -0 )

KronosAUG. 02, 2011 - 03:19PM JST My sympathies to those earning in USD and paying in JPY.

Yep that's one of me, times really suck financially but i'm happy with life everyday regardless of the situation :)

0 ( +0 / -0 )

Just do it like the Chinese. They've been manipulating their currency for a while now and look at their economic boom

0 ( +0 / -0 )

There have been a lot of expats rejoicing this strong yen thing because they only think of "oo, now I can buy more dollars." While it may sound great for THAT person alone, it is bad for the Japanese economy overall. It means less tourism and less spending. When I went to Sendai for a month, I held back my spending by A LOT. Valuable tourist dollars lost because I didn't have as much money as before. A LOT of people are now holding back because it's gotten so expensive. It doesn't help that the media is constantly harping on this (on CNN, MSNBC) and making it look like it's too expensive to visit.

That's not even factoring in the export issue. No, this strong yen looks good for a few expats, but it's terrible for the Japanese economy overall. I hope the yen falls to reasonable amounts. Japan does not need anymore problems.

0 ( +0 / -0 )

The Chinese economic boom wasn't created by currency manipulation.

The Chinese are producing and selling what they produce.

When Japan did this, Japan boomed.

When the U.S.A. did it, they boomed too.

Currently the U.S.A. isn't producing much more than passenger aircraft, drugs, both legal and illegal and arms.

It's HUGELY overspending on three senseless "wars," against an enemy (terrorism) that doesn't exist.

And Japan, in its wisdom (sarcasm) has tied the yen to the dollar.

So, as the U.S.A. sinks, so does Japan.

-1 ( +1 / -2 )

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