Specialists at Standard Life Investments in Edinburgh claim that Japanese monetary authorities have to act in the near future in order to stem the appreciation of the national currency versus the greenback. According to the specialists, strong yen reduces competitiveness of the country’s exporters in comparison with their South Korean rivals.

Annual pace of Japan’s economic growth in the second quarter was equal only to 0.4% compared to 7.2% in South Korea. Yen becomes more and more expensive. Since the beginning of the year it gained 12% versus won.

The Bank of Japan added 10 trillion yen ($119 billion) in liquidity injections on August 31, while Finance Minister Yoshihiko Noda announced that the government is ready to conduct decisive measures if necessary.



Chart. Daily USD/JPY

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