Japanese yen is maintaining its weakness right now, underperforming by many standards. The yen is down against its major counterparts, and this state of affairs is unlikely to change, with Japanese officials preferring a weak yen to a strong one.
For 2013, the Japanese yen is on track to be one of the weakest currencies. Many consider that the yen is underperforming, but there is no real reason, as yet, to favor the yen. Japanese officials prefer a weaker yen, since it makes exports more desirable. The weak yen is also being used as a tool to kickstart the economy. Deflation has been a problem in Japan for decades, and a weaker yen is supposed to be the cure to these ills.
So far, it’s been working to some degree. The fact that other countries are also trying to manage their economic growth with weaker currencies has been slowing the efforts of Japanese policymakers, but things do seem to be turning around. The policies of Prime Minister Shinzo Abe, supported by the Bank of Japan, seem to be helping the stock market while the yen remains weak.
At 14:42 GMT USD/JPY is up to 99.6850 from the open at 99.1995. EUR/JPY is up to 133.8965 from the open at 133.0575. GBP/JPY is up to 158.6650 from the open at 158.6350.
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