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Market News – Japan Ready For Currency Intervention

With the Yen experiencing a 5 percent jump within the last month, the Japanese government is seriously considering intervening and devaluing their currency with the help of the Bank of Japan.

Japan is still in the process of recovering from the tsunami, and if their currency continues to rise, many fear that the economy will be unable to recover and they will fall back into a recession.

Everyone expects Japan to ease their monetary policy by the end of the week, and many officials have stated that if they do intervene, they will do it in a big way.

 

Swiss Franc Rally Quashed By SNB

With the Swiss Franc growing at a rapid pace, the Swiss National Bank cut it’s interest rate target to try and keep things under control.

Many investors were buying the Franc hand-over-fist in an effort to stabilize their portfolios. This caused a huge spike in the Franc which didn’t really reflect the fundamentals of the situation. To ensure the Swiss economy is safe and things don’t get out of control in a hurry, the SNB thought this move was necessary.

 

Asian Credit Still Solid?

Standard and Poor’s still believes that almost all of the credit rating in Asian countries, except Japan, are still safe and sheltered from what is happening around them.

At a time when the US, Spain and Italy are all being threatened with credit rating downgrades, it is a little surprising that the Asia has been relatively untouched when it comes to their economies.

Of course, things could change in a hurry if the economy continues to experience trouble worldwide. But, for now, it seems as though Asia is in good shape.

 

China Bolstering Financial System?

At a time when many of the worlds leading economies are experiencing hardship, China is looking for ways to gain more control over it’s own and prevent the same from happening to them.

It has been reported that China is considering creating a new state run organization that would oversee both the state owned banks and other financial enterprises. This new organization would be incredibly powerful and would have the ability to intervene when it deemed necessary.

This is not yet a done deal and the plan has been under scrutiny for quite some time now, but based on what the rest of the world is going through right now, it may not be a very bad idea…

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