Market ponders Japan’s FX strategy

MARKET NEWS

TOKYO – Japanese authorities appear set on using a weaker yen to kick-start the nation’s ailing economy, but confusion reigned last week in the FX markets over the policy.

Although a weaker yen could boost the export sector in Japan, and in turn economic growth, the depth of the decline necessary, coupled with rising political anxiety from Japan’s neighbours, have appeared to derail the idea already.

Morgan Stanley analysts said a level of ¥160 per dollar would yield just 1% of economi