Japan succumbs to yen for dollars

david derosa

Japan aims to curb appreciation of the yen by buying huge amounts of US dollars

It's nice to know someone likes to buy the dollar these days. That someone happens to be Japan, though the reason for this dollar gluttony is more a fear of the yen's strength than a love of the dollar. Japan's central bank was at it again the first week in January selling huge quantities of yen to buy dollars. By one industry estimate, the Bank of Japan bought between $3bn and $5bn against the yen on 9 January alone. Japan sold ¥20.1 trillion in 2003 through 26 December to stem the currency's appreciation. Nevertheless, the yen rose almost 12% against the dollar in the same time period. ...