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U.S. dollar plummeted to 81.37 yen in Sydney

Japanese Finance Minister Yoshihiko Noda said Tuesday that the government will take resolute measures to stem the yen’s rise.

Noda made the remarks after the U.S. dollar plummeted to 81.37 yen in Sydney, hitting a fresh low against the yen in 15 years.

Addressing a press conference, Noda said that the government will closely watch exchange rate moves and take decisive action, including intervention, if necessary as excessive volatility in the currency market is unfavorable to the global economy.

On Sept. 15, Japan intervened in the currency market for the first time since March 2004 to staunch the strengthening of the Japanese currency, which severely battered Japan’s export-led recovery.

Many Japanese companies set their assumption rates for dollar/ yen at 90 yen and at 110-115 yen for euro/yen in the year to March 2011. And when the yen is strong, profits will be eroded when repatriated, hence a weaker yen will be welcomed particularly by Japanese exporters. (PNA/Xinhua)

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