Dollar Trading 14-year Low On Yen
27 November 2009 –
The dollar tumbled to its lowest in 14 years (since July 1995) against the yen on Thursday. The currency strengthened 0.5 percent to the dollar, to 86.89 in morning trade in London, Bloomberg data showed.
Traders said the dollar’s fall against the yen was driven by US rather than Japanese factors, and Japanese Government Officials said that the central bank was not thinking of intervening in the currency market at this point.
A stronger yen is a headache for Japan’s new Democratic party government, as it makes exports less competitive, threatening to derail a fragile economic recovery.
While the yen has actually risen only 3.8 per cent against the dollar this year, there are widespread concerns among manufacturers, that unless the yen’s rise was restricted, the economy would be”damaged”.
Many companies that had issued bonds or raised loans in yen to take advantage of low interest rates in Japan, would face the brunt of appreciating Yen.
