Description: Bank of Japan Governor Masaaki Shirakawaâ€™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 currencyâ€™s surge to a 15-year high versus the dollar imperiled the nationâ€™s export-led recovery. Meantime, pressure is growing on U.S. Federal Reserve Chairman Bernanke to print more dollars to bolster Americaâ€™s flagging economy, a policy that contributed to a weaker greenback in 2009.
Questions for discussion:
- Summarize the currency strategies in play around the worldâ€™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?
Leave a Reply