Yen weakens as 'currency war' rhetoric heats up

Business Jan. 28, 2013 - 12:30PM JST ( 4 )

The requested article has expired, and is no longer available. Any related articles, and user comments are shown below.

Order by Time Order by Popularity

4 Comments

3

billyshearsJan. 28, 2013 - 01:36PM JST

The Europeans have the gall to complain about the yen weakening and currency manipulation! Obviously, the Germans' only concern is that rival Japanese products will at last become more competitively priced. The yen has been vastly overvalued for years, in part because of policies concerning the euro and the dollar.
-3

DogJan. 28, 2013 - 02:02PM JST

billyshearsJan. 28, 2013 - 01:36PM JST

The Europeans have the gall to complain about the yen weakening and currency manipulation! Obviously, the Germans' only concern is that rival Japanese products will at last become more competitively priced. The yen has been vastly overvalued for years, in part because of policies concerning the euro and the dollar.

Get a grip.... 70% of German exports go to her Euro partners, the weakness of the Euro hardly helps them, it hinders them in that the import of fuels and other raw materials make their products more expensive to their main trading partners.

You can groan and gripe all you want but the simple fact is that Japan is manipulating its currency to be weaker. Japan runs a current account surplus equal to 2% of her GDP and until that current account surplus is eroded to nothing, then the Japanese Yen should be strengthening.

The Eurozone countries and the USA run deficits with Japan, therefore their currencies should be weakening. However this mercantilist madness that has a hold on all the Asian economies - granted that Japan is not the only currency manipulator - is very quickly going to lead to disaster and ensure that the 21st Century will not be the Asian Century.

As I've said before, what Japan is doing to weaken her currency is like an obese man trying to catch AIDS to reduce weight.
0

ihope2eatwhalesJan. 28, 2013 - 05:12PM JST

Dog,

the simple fact is that Japan is manipulating its currency to be weaker.

They have done no intervention to the currency. Yen is weakening due to fundamental factor of new desire to end deflation. If deflation can be conquered, of course the yen will be weaker.

If seeking 2% inflation is currency manipulation, most developed nations are also doing this.

Japan runs a current account surplus equal to 2% of her GDP and until that current account surplus is eroded to nothing, then the Japanese Yen should be strengthening.

Current account surplus only supports yen in medium-long term.

The Eurozone countries and the USA run deficits with Japan, therefore their currencies should be weakening.

Japan trades with many nations besides USA, using US dollars for settlement. If Japan has trade deficit with such nations which use US dollars, then it cancels effect of US trade deficit / Japan trade surplus.
-1

wtfjapanJan. 29, 2013 - 10:15AM JST

@dog yes and what do you call all the "quantitive easing" that the US has been doing for the last 4+ years!? its currency manipulation you can call it whatever you want simple fact it has the same effect devalue your currency to make exports more competitive. If the US hadnt started all this money printing then other countries wouldnt have to also devalue there currency to correct the imbalance the US has caused! more countries that are able will also have to follow suit, the US can call them label them currency manipulators but that just make them hypocrites!!