politics

Gov't cautious over yen's spike but says no need to panic

26 Comments
By Stanley White and Leika Kihara

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26 Comments
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Sure no need to PANIC???? Yeah, tell that to SONY, TOYOTA etc...

-2 ( +2 / -4 )

I was just looking at the rate yesterday and saw the spike, didn't want to believe my eyes. I was transferring USD to a bank out here and saw something was wrong. Dang...

1 ( +1 / -0 )

panic only for those who have not yet not transferred their overseas assets to Japan. as usual, not mention of importers.

1 ( +1 / -0 )

no overt worries about the level of the recently weakening currency.

Correction: [Top Japanese officials expressed] no overt worries about the level of the recently STRENGTHENING currency. (JPY)

The USD weakened and the JPY strengthened, briefly to 95.90 -- from 103.74 last month. Japan is hoping for a weaker yen for the sake of its exporters.

0 ( +1 / -1 )

"The yen marked its biggest one-day climb against the dollar in three years on Thursday, underscoring the fragility of the early benefits from Prime Minister Shinzo Abe’s aggressive reflationary policies."

But hey, let's hear from certain posters about how it was not a significant drop.

0 ( +3 / -3 )

Investors still do not have much confidence in yen and they continue to have cautious approach. Japan's yen currency has to have longer term consistancy in value for exporters/importers. With a continue sudden fluxuation, it is a problem for making a longer term contracts with foreign countries. What it amount to is that some of these investors are waiting for the yen to stabilize.

0 ( +2 / -2 )

the world’s third-biggest economy

japan is not the third biggest economy anymore. india is.

-6 ( +3 / -9 )

95 yen to the dollar is still acceptable, methinks. I've read that most of the exporting companies will be able to make profits at 80 yen to the dollar maximum. Besides, the strong yen will buy them cheaper materials abroad, while petrol intensive industries can take advantage of better oil prices. Keeping the exchange rate within 90-100 yen to the dollar is sensible for these reasons.

1 ( +2 / -1 )

I have to convert my money to yen within 8 days... Would you guys say it'd be better to just do it now in case it gets worse, or is it likely to bounce back up to the 100 yen mark anytime soon?

0 ( +0 / -0 )

For god sake. Inflation will NOT solve Japan's economy. Definitely. Japan should solve the problem by create a solution. NOT create even bigger problem.

1 ( +3 / -2 )

Not much to do with investors, a lot to do with traders.

3 ( +3 / -0 )

These fools have no idea what they're doing.

"We will finalize a growth strategy shortly ... and steadily proceed with implementation," Amari told a news conference after a cabinet meeting.

Translation: We don't know what to do yet, but we will soon, and then we'll do it slowly. Whatever it is, by golly.

-3 ( +1 / -4 )

Let's not forget that the yen moved from about 85 to 102 in a relatively short period of time, so whatever the current political/economic situation, a pullback was to be expected.

0 ( +1 / -1 )

Those who were sitting in front of a monitor waiting for the non farm payroll figures out of the US last night knew that it was expected to be a significant factor in determining Bernanke and the Fed's policy towards quantitative easing. The astronomical short yen/USD positions were being unwound by traders globally prior to the figures so of course the stuff hit the fan on Thursday morning. It's called volatility. The journalists, economic analysts who haven't the stones to put their money where their mouths are, all like to place phantom meaning to these large moves in what are simply the result of speculation in financial instruments.

2 ( +2 / -0 )

The exchange rate is within tolerances and some fluctuation is to be expected. Stability will come !

No one is in panic mode and I would say most companies with some intellect would have allowed for these movements.

Only ones who see it other wise are the ones who know not what they type.

Things are by far much better than this time last year.

-1 ( +2 / -3 )

"the market moves reflect a global fall by the U.S. currency"

Ah, the good ol' almighty dollar, lol.

0 ( +0 / -0 )

Gov't cautious over yen's spike but says no need to panic

What ? Apple raises price of it product already, please ask them to change price again

1 ( +2 / -1 )

What ? Apple raises price of it product already, please ask them to change price again

Why don't we just pay for everything in US dollars, wouldn't that just be easier?

-1 ( +2 / -3 )

“We are watching these moves, but this is not about intervention and I don’t think we have to respond immediately,”

Here we are, intervention and manipulation ! So who knows ? Maybe that current fall period was orchestrated and decided a long time ago, in purpose, to sweep all the cash on the table traded by those who got hypnotized by the abenomics and are positioned long. By the time they will revised their position, market will turn around and they will be swept twice.

“What’s important is the fact that Japan’s economy is steadily recovering,”

"Abenomic" soon to be included in the dictionary as a new synonym for autosuggestion.

1 ( +1 / -0 )

Ooh, ooh, ooh, ooh, ooh! I got a new one from a good friend at the bank... "Abe-geddon!"

The Four Horsemen - Abe, Aso, Kuroda, and Amari... Apocalypse imminent!

2 ( +3 / -1 )

The dollar will get stronger again they just let it get weak for a week to import oil with the strong looking yen and then they will flood the market with yen again to make the dollar appear strong and Toyota can export a million more cars and people are Deluded to invest in bonds and other garbage. They are trying to see saw their way out of trouble. They want a cheap yen but can't afford the more expensive oil and other imports.

1 ( +1 / -0 )

Good! Now poor people like me dont have to worry so much about food and energy prices rising. I sure as he#% wasnt going to get a raise so this is good news for people like me.

0 ( +1 / -1 )

StormR: "Only ones who see it other wise are the ones who know not what they type. Things are by far much better than this time last year."

And yet again the people who don't agree with you and bow down to Abenomics "don't know what they type". Like I said on the last thread, it's good that you're optimistic, but saying everything is rosy and 'far much better' simply because it applies to your situation and a limited part of the economy does not mean things are much better altogether, or even on the whole. I know a number of people suffering greatly because the cost of importing -- which their companies (or those they work for) depend on -- or who have been fired.

-1 ( +1 / -2 )

You keep on about heaps of people losing jobs but have yet to show any evidence, and data suggests people are being employed in increasing numbers.

A change in value of the yen like we have seen recently is hardly going to have the impact that dramatic changes in the yen had like we saw in 2008 and up to last year. Prior to 2008 yen was way up 120 to the $ , how is it now suddenly these "import" companies cannot cut it with a yen rate that is still 20% or more better than in those days ?

Have you seen any large numbers of people lining up at city hall in the hello work areas like we saw previously? NO !

81% of companys in a survey I read on friday say they are having trouble finding and hiring people with the right skills or qualifications.

There will always be people losing their jobs, but thing is now far less people are and in the recent improving economy more people will be able to get employment or change jobs especially if they equip themselves with the skills business' are looking for.

Seems that if you sit on your hands you will get passed over.

The business enviroment is improving dramatically and there is more improvement yet to come.

If those companies are importing and finding things tough because of the exchange rate then make adjustments, move into other areas.

-1 ( +0 / -1 )

"What's that, captain?" "No need to worry, its just an iceberg".

0 ( +0 / -0 )

Substantial correction. Hurt all the short Yen players seriously. Many have to cut and squared positions. Healthy; reduced excessive speculation. BOJ doubling of money supply in 2 years will ensure that Yen will be relatively the weakest major currency. Exporters and Nikkei will do quite well in due course over this 2 years timeframe.

1 ( +1 / -0 )

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