Forex Blog: Currency Trading News & Analysis.

July 20th 2005

Yen falls on political uncertainty

The Japanese Yen is looking especially perilous, due to increasing political uncertainty.  Junichiro Koizumi, Japan’s Prime Minister, has undertaken an effort to privatize Japan-Post, which among other things, is the world’s largest savings bank. Unfortunately for Koizumi, there are several prominent Japanese politicians who are opposed to the move, on the grounds it may result in job losses.  Koizumi’s administration has witnessed growth, albeit miniscule, in Japan’s economy, following a decade-long recession. As a result, investors and traders are not reacting positively to the potential rejection of Koizumi’s proposal. A senior Japanese politician and Koizumi supporter suggested such a rejection would have a significant impact on asset and currency markets. Bloomberg news reports:

“Koizumi has been a source of stability after a decade of economic turmoil in Japan,” said a [senior economist].  “Investors like stability. The prospect of removing that stability would not be good for the yen.”

Read More: Yen Touches 14-Month Low Against Dollar, Tumbles Versus Euro

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Posted by Adam Kritzer | in Investing & Trading, Japanese Yen | No Comments »

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© 2004 - 2024 Forex Currency charts © their sources. While we aim to analyze and try to forceast the forex markets, none of what we publish should be taken as personalized investment advice. Forex exchange rates depend on many factors like monetary policy, currency inflation, and geo-political risks that may not be forseen. Forex trading & investing involves a significant risk of loss.