Japanese Yen falls against the Dollar

September 24th, 2010 - 11:31 pm ICT by Aishwarya Bhatt  

Sep 24 (THAINDIAN NEWS) The Japanese yen took a dip on Thursday against the United States dollar amid suspicion that the country’s authorities have taken action to weaken the currency.

The yen hit a 15-year high against the United States dollar and the country’s central bank, Bank of Japan (BoJ) took steps to halt the currency’s rise.

Strong yen discourages export which is vital for the Japanese economy, the second biggest in the world. The country emerged from the global recession last year mostly because of its strong exports. It was one of the first major economies to have done so.

Though the dip took place at levels where authorities were not expected to intervene, traders in Tokyo believe that the country’s authorities took the steps to halt the currency’s rise. The Japanese authorities have not issued any confirmation on halting the yen growth. The last time the country took action to halt the growth of its currency, the country’s Finance Minister, Yoshihiko Noda confirmed the action.

This news comes in the wake of a financial struggle between Beijing and Washington. The United States has intensified pressure on China to revalue its currency, the Yuan. The United States believes that China is keeping the value of the Yuan lower than it should be.

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