Stabilising the Yen Option Japan Won t Use

Stabilising the Yen: Option Japan Won't Use THE major news currently is that the US dollar's exchange rate has touched 150 Japanese yen. Compared with any of the major currencies of the world, the dollar's decline has teen the greatest relative to the yen since September 1985 when it was agreed among G-5, the club of rich countries including Japan, that the dollar's exchange rate would be allowed to adjust downwards. It was hoped that this would obviate the need for the US to seek other less desirable ways of correcting its balance of payments deficit. A weak dollar, it was thought, will raise the cost of US imports while making US exports more competitive.