Yen Surges to 13-Year High; Damages Japanese Exports
Posted on 15. Dec, 2008 by admin in JPY Economic News, Japanese Yen, Japanese Yen Currency
The JPY’s 17% gain against the dollar since September has lowered the value of overseas sales and undermined the competitiveness of Japanese cars, cameras and televisions. The Yen’s surge to a 13-year high last week has compounded woes for Japan’s manufacturers who are already reeling from a collapse in export markets. Layoffs by companies including Sony and Toyota have brought the recession to Japanese households and increased the risk of a prolonged economic slump.
Sentiment among Japan’s largest manufacturers fell the most in 34 years, signaling companies are likely to cancel spending plans and cut more jobs, pushing the economy further into recession.
This week Japan will release various indicators which will likely contribute to trading volatility in JPY pairs. However, traders should pay closer attention to the Bank of Japan’s (BoJ) press conference and Monetary Policy Meeting this week for any hawkish indicators from Japanese officials, as they could define the JPY’s direction this week more than the economic indicators.
