Bookmark and Share

Has Competitive Devaluation of Currencies Started with Japan intervening to weaken the Yen

2 Comment

Currency Wars seem inevitable as Global Imbalances continue to Rise.Japan has been put under huge pressure by Japanese Conglomerates like Hitachi to intervene in the Currency Markets.The Yen has touched a 15 Year High Against the Dollar making life tough for the Export dependent Japanese companies.The benchmark Japanese Stock Index has been touching lows as Big Exporters like Sony,Hitachi,Toyota and others face adverse terms of trade compared with their South Korean and Chinese counterparts.However Other countries were not willing to support Japan its its interventionist stance as these Developed Nations face huge problems on their own.However this action by the Japanese may not be taken too kindly by the US which is currently investigating China for being a Currency Manipulator. With the Swiss and Japan now openly intervening in the Forex Market to devalue their currencies,it seems hard to brand China as the Sole  Currency Manipulator

With Every Country wanting to Use Exports to get out of their Tough Fiscal Situations,it does seem that Currency Manipulation will become a mainstream activity.Gold and Silver are already touching new highs and with countries hell bent on competitively devaluing their currencies,expect the precious metals to go even higher.

U.S. dollar spikes vs yen on reported intervention – MarketWatch

The U.S. dollar climbed to as high as 83.87 yen Wednesday morning, after trading as low as ¥82.85, with various news reports suggesting that Japan’s monetary authorities have intervened in the foreign-exchange market to help stem the yen’s advance against the greenback. The U.S. dollar had falled in early Asia trade after buying ¥83.19 late Tuesday in New York.


Sneha Shah

I am Sneha, the Editor-in-chief for the Blog. We would be glad to receive suggestions, inputs & comments on GWI from you guys to keep it going! You can contact me for consultancy/trade inquires by writing an email to

2 Responses so far | Have Your Say!