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  • Japan Unveils $100B Effort to Cope With Yen

    From bloomberg.com

    Japan’s government unveiled a $100 billion effort to cope with persistent strength in the yen that threatens to thwart the nation’s recovery from three straight quarters of economic contraction. Officials will release $100 billion of its foreign-currency reserves to the Japan Bank for International Cooperation, Finance Minister Yoshihiko Noda told reporters today in Tokyo. JBIC, as the lender is known, is a state-run export credit agency. The yen traded at 76.60 per dollar as of 12:07 p.m. in Tokyo, higher than before Noda started speaking. The one-year funding program will be used to aid small companies that are ... (full story)

  •  Guest
  • | IP XX.XXX.116.223
Much ado about nothing...

It's Noda!
  •  Guest
  • | IP XX.XXX.91.124
i think right now the Japanese government is very serious...
  •  Guest
  • | IP XX.XXX.116.223
I hope, the current rate is truly hurting me when I travel to Yokohama for business and family.
I'm being negative wishing for the opposite.
  •  Guest
  • | IP XX.XXX.91.124
see he "pressed" major institution in Japan to disclose trading position, the result: probably there will be less usd/jpy short position in Japan...
  •  Guest
  • | IP XX.XXX.42.118
100 billion JPY release from the BoJ or a 100 billion USD??
  •  Guest
  • | IP XX.XXX.116.223
Unfortunately, the real problem is a weak dollar. There is no fundamental reason to buy either currency. The trend will change when U.S. rates start to rise, and that will not be any time soon.
Right now it's a battle between biggest loser.
Quoting Guest
Unfortunately, the real problem is a weak dollar. There is no fundamental reason to buy either currency. The trend will change when U.S. rates start to rise, and that will not be any time soon.
Right now it's a battle between biggest loser.

u shoot it
Cant they just print money like what US do?
They need trillions to counter the Fed, but they only print billions, which is nothing.
If this turns out to be a competition of who can make the currency weaker than the other guy, the two currencies that are in straight competition is the JPY and CHF.

Japan or the Swiss don't have to winn the whole currency war, they just have to win the market idea of what currency is the best safe heaven currency.

The Swiss need to get the idea across that the JPY is the better one, and the Japanese would win if they can convince the market that the Swissy is the better safe heaven.

In that war, now, the Japanese have declared how much they are willing to put into it, and have come up with the sum of $100 Billion.

They are already now on the slide, as the Swiss have put in 300 Bil CHF ( That will make roughtly 375 bill in Dollars), and have already had a reversal pattern going for some time now.

The Swiss have so far put in an almost 4 times more effort in their reversal, so I am afraid that the Japanese effort will hold for a while, but have a higher risk for reversal than the CHF have.

The bottom line, they are not doing anything serious yet. (If they ever will)
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  •  Guest
  • | IP XX.XX.14.81
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  • Story Stats
  • Posted: Aug 23, 2011 11:21pm
  • Submitted by:
     Newsstand
    Category: Low Impact Breaking News
    Comments: 10  /  Views: 2,645