Monday, August 20, 2007

The rise of the Yen!


The yen is rising and rightly so as the dollar has gotten weak,more and more central banks are changing their reserve currency to the Yen as they rightly know that the Yen is rising and rising fast in value.of course,Japan would love a Yen that is undervalued but that is not going to happen now or ever.even Japan does not have that much liquid cash to suppress a rising Yen forever.
It is sad to see that an economically strong country like Japan to try and manipulate the currency markets to its liking.and as often in the past and the recent times as well,the Japanese central banks have flooded the market with liquid currency to support a falling dollar and to suppress a rising Yen.this has resulted in barely held hostile attitude of the world with exception of China,to such a policy.because often Japan's gain comes by 'Clumping' all over the other currencies and this so often lead to huge losses for the world.to but with all economic trends pointing to a very strong and re surging Yen and a Dollar that is heading in the range of a 'free fall',even Japan can no longer hold back the tides of the currencies.no one has that much cash and sooner or later we will see the rise of the Yen and the Yen will take its rightful place amongst the world currencies!

japan,economy,forex,inflation,

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