Yen appreciation since then has helped to offset the complementary stock price declines suffered by exporters.
Private investment should be further stimulated when the fear of future yen appreciation declines, and the constraint on new bank-lending diminishes as bank profit-margins widen.
In contrast, once expectations begin to shift away from continuing yen appreciation and deflation, managing domestic Japanese monetary policy in the transition will be technically intricate.
Toyota, Nissan, and Honda are most exposed to yen appreciation.
FORBES: Whither Japan Stocks: Four (Maybe Five) Trends that Will Push Stock Prices Higher
The day started with the Bank of Japan announcing it was intervening the currency markets to stem yen appreciation, sending the U.S. dollar sharply higher against its Japanese counterpart.
FORBES: Dow Collapses, Falls More Than 500 Points As Gold, Oil, Treasury Yields Plummet
At some point, perhaps soon, and perhaps as a consequence of Asian investors feeling that they have a surfeit of Japanese stock exposure, yen appreciation will give way to depreciation.
FORBES: Whither Japan Stocks: Asian Buying Supporting the Market
Downside risks, perhaps not surprisingly, include additional yen appreciation.
FORBES: Sony: Merrill Turns Bearish; Looking For A Turnaround Plan
The carmaker says that one yen of appreciation for the Japanese currency translates into a 30 billion yen hit to its bottom line.
In preparing for a coming storm investors should anticipate further unwinding of yen carry trades and a significant appreciation of the yen.
The Yen has experienced significant appreciation over the past few years, which has hampered Japanese growth.
This has created a decrease in safe haven options and increased the incidence of additional appreciation in the yen.
Many in China have concluded that the blame for Japan's economic malaise in the 1990s lay largely with the appreciation of the yen.
Multiple disasters, including financial crises, seemingly culminating in the 3.11 natural disasters, reinforces this judgment, as does the seemingly inexorible appreciation of the yen.
Against the background of the appreciation of the yen and the relaxation of trade restrictions, imports of finished products to Japan have expanded rapidly.
Those that call for the yuan to appreciate faster often cite Japan rapid-fire appreciation of the yen under the Plaza Accord in September of 1985.
Japan and Switzerland have both gotten involved in currency markets over the past two days, stepping in to prevent outsized appreciation in the yen and the Swiss franc.
FORBES: Roubini: QE3 Is Coming, But Bernanke Will Be Too Late
Analysts said that many large Japanese banks or pension funds tended to sell riskier assets during times of uncertainty, bringing the money back into the country, resulting in an appreciation in the yen's value.
Switzerland cut interest rates on Wednesday in an attempt to weaken the franc, while the Japanese government and the Bank of Japan collaborated on moves today in an attempt stifle similar appreciation in the yen.
FORBES: Roubini: QE3 Is Coming, But Bernanke Will Be Too Late
Of course, one short term result of the strong net buying has been to put appreciation pressure on the yen.
FORBES: Whither Japan Stocks: Asian Buying Supporting the Market
The weak economy, and the steady appreciation of the euro against the yen in recent years, has dampened demand.
The emergence of a weak target exchange rate implies a more internationalized yen, which is another variable in arresting excessive appreciation of the dollar.
Under severe U.S. pressure in the 1980s, Japan allowed the yen to float stronger, with no limit on its appreciation.
FORBES: For Japan To Emerge From Its Malaise, It Must Place A Ceiling On The Yen
In fact, the real's devaluation could help maintain Asia's crucial export growth by slowing the recent strong appreciation of currencies such as the baht, the won and the yen, which could undermine export competitiveness.
Mr Svensson argues that the yen needs to be pushed to an undervalued level, from which the public would then expect an appreciation of the real exchange rate.
In retrospect, the actions of the SNB are partially responsible for the continued rise of the yen, as investors and speculators were unable to pour into the Swiss currency- safe haven, seeking appreciation due to the effective peg to the euro.
The restructuring story remains a driver of appreciation for Hitachi Ltd. (PINK: HTHIY) which rose 4.17% to 550 yen in Tokyo, up from 404 yen in November.
应用推荐