December 13, 2009

What happens to the yen

We are hearing more and more this currently relentless drumbeat from Japan that a strong yen is very problematic. This was a headline from today's bloomberg however it is a bit confusing to me. If they want their currency to weaken why limit how much is being put out on the market? Will have to wait and see how this materializes.

Fujii Says Japan Must Cap Bond Sales as Hatoyama Backpedals

Dec. 11 (Bloomberg) -- Japanese Finance Minister Hirohisa Fujii said the government must cap bond sales at 44 trillion yen ($495 billion) next year, in contrast with Prime Minister Yukio Hatoyama, who indicated he is prepared to abandon the pledge.

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