Koltso Urala: stable yen to ensure Japan’s speedy recovery

15 March 2011 (18:32)

UrBC, Yekaterinburg, March 14, 2011. The earthquake in Japan has had an immediate impact on the global economy. Following the news of the earthquake and the subsequent tsunami the Japanese stock market went dramatically down, while the Nikkei 225 decreased by 6.25%. The calamity affected the foreign exchange market as well, since the news of the catastrophe urged the yen holders to sell out, which resulted in the yen weakening against the most important currencies.

The analysts report, however, that the yen regained its positions and even grew stronger very soon.

OOO Bank Koltso Urala’s Foreign Exchange Transactions Director says the yen is most likely to be spared any unnecessary fluctuations, and once the situation becomes less hectic and the affected regions start recovering, the yen will prove strong enough to improve its exchange rate.

‘Apart from all this, one might say the stabilization of the yen will ensure the speedy recovery of Japan’s economy, even though this naturally cannot make up for the loss of lives,’ I. Nesterovitch says.

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