Description: Bank of Japan Governor Masaaki Shirakawa’s success in weakening the yen may hinge on Ben S. Bernanke. Japan said two days ago it sold yen for the first time since 2004 because the currency’s surge to a 15-year high versus the dollar imperiled the nation’s export-led recovery. Meantime, pressure is growing on U.S. Federal Reserve Chairman Bernanke to print more dollars to bolster America’s flagging economy, a policy that contributed to a weaker greenback in 2009.

Source: Bloomberg.com
 
Date: 09/16/2010

Link: http://www.bloomberg.com/news/2010-09-16/bernanke-shadow-of-quantitative-ease-limits-boj-success-with-yen-weakness.html

Questions for discussion:

• Summarize the currency strategies in play around the world’s central banks.
• What are your predictions for changes to currency exchange rates over the next year?
• How should financial managers whose firms are affected by currency fluctuations react to the information presented in this article?