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© 2016 AFPAsian markets struggle but weak yen lifts Tokyo again
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The requested article has expired, and is no longer available. Any related articles, and user comments are shown below.
© 2016 AFP
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Homotenashi
Japan's currency falls dramatically and the stock market soars. Kuroda is going to overshoot inflation. Interest rates will be less than zero. You will be penalized for keeping money in the bank or in bonds ( losing out to inflation in both cases ).
KnowBetter
The Yen dropping to around the 118 to 125 mark against the USD is the best thing possible right now for the Japanese economy. Japanese exports will soar and you will get Abe mandated internal inflation. Japan has tried everything else to restart Japan Inc. and all of it has had little to no effect. A lower Yen acts like a full blown sale on your products and the world knows Japanese quality and is getting tired of the low end cheap crap they are getting now from other sources. It's time to seize that moment and ride the wave back to shore.
some14some
fine now get them labor, raw material and market outlets.
fxgai
Right now maybe, but it's not sustainable. The best thing in the longer term is for Japan to stop relying on having an unsustainably weak currency in order to succeed. Japan is a developed nation now, and it should encourage it's economy to graduate to a higher level.
But the Japanese exports soaring will mean the exporters have loads of foreign currency to convert back into yen, and this positive trade balance then will wipe out the effect of the weak yen, the speculators will jump on board, and it's straight back to square one again. The broader current account balance being in surplus has the same effect. Japan has done the same thing repeatedly despite growing by hardly anything for decades.
They haven't seriously tried reforms, they've only talked about it. Once it became obvious that they were failing to act (circa this time last year) the yen subsequently strengthened again.
If they actually implement reforms properly and not in the usual piecemeal fashion, I for one believe the effects would be massive.
vinarius@pm.catv.ne.jp
What is the point of selling, When U cannot even eat and pay everyone that U employed ???.