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China, South Korea Officials Alarmed as Yen Slide Threatens Exporters

China, South Korea Officials Alarmed as Yen Slide Threatens Exporters (Reuters)

Government officials from China and South Korea warned Monday that the rapidly falling yen may hurt their exporters. Japan’s monetary policies championed by Japanese Prime Minister Shinzo Abe to weaken the yen are an attempt to pull its moribund economy out of a two-decade slump. Officials from Beijing and Seoul, respectively, understand the need for Tokyo to revive its $5 trillion economy and escape persistent deflation but they also expressed worry that the massive monetary and fiscal stimulus has sharply weakened the yen and put their exporters at a disadvantage in global markets. Chinese and South Korean officials have refrained from direct action to maintain competitiveness, such as intervening by buying dollars in currency markets, but there is a risk of a response if their export sectors are severely hurt.

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Government officials from China and South Korea warned Monday that the rapidly falling yen may hurt their exporters.

archive

China, South Korea Officials Alarmed as Yen Slide Threatens Exporters

Government officials from China and South Korea warned Monday that the rapidly falling yen may hurt their exporters.

China, South Korea Officials Alarmed as Yen Slide Threatens Exporters (Reuters)

Government officials from China and South Korea warned Monday that the rapidly falling yen may hurt their exporters. Japan’s monetary policies championed by Japanese Prime Minister Shinzo Abe to weaken the yen are an attempt to pull its moribund economy out of a two-decade slump. Officials from Beijing and Seoul, respectively, understand the need for Tokyo to revive its $5 trillion economy and escape persistent deflation but they also expressed worry that the massive monetary and fiscal stimulus has sharply weakened the yen and put their exporters at a disadvantage in global markets. Chinese and South Korean officials have refrained from direct action to maintain competitiveness, such as intervening by buying dollars in currency markets, but there is a risk of a response if their export sectors are severely hurt.

Written By

Paul Dykewicz is the editorial director of the Financial Publications Group at Eagle Publishing Inc., www.eaglepub.com, of Washington, D.C. Eagle publishes five free, e-letters, 10 weekly trading services and five monthly investment newsletters, Forecasts & Strategies, Successful Investing, Cash Machine, Growth & Dividend Report and The Alpha Investor Letter. He also is the editor of Eagle Daily Investor and the author of the inspirational book, "Holy Smokes! Golden Guidance from Notre Dame's Championship Chaplain."

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