The yen appreciated to as high as 81.06 per dollar today in Tokyo, compared with 81.31 when stock trading began. A stronger yen cuts overseas income at Japanese companies when converted into their home currency.
The yen is headed for its strongest annual average level against the dollar since currencies began trading freely in 1971, according to data compiled by Bloomberg and based on each day’s closing price.
The Group of 20 agreed to “move towards more market- determined exchange-rates systems that reflect underlying economic fundamentals and refrain from competitive devaluation of currencies,” its finance ministers and central bankers said after talks on Oct. 23 in Gyeongju, South Korea.
The Bank of Japan will probably leave policy unchanged this week to gauge whether cutting interest rates to near zero and pledging to buy financial assets will shield the economy from the yen’s advance to a 15-year high.
http://www.bloomberg.com/news/2010-10-25/japanese-stocks-rise-on-outlook-for-corporate-earnings-softbank-advances.html
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