Magazine article from our research archive:
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Oh dear: the yen. (yen inflation)
- Article from:
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The Economist (US)
- Article date:
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February 27, 1993
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Copyright informationCOPYRIGHT 1993 Economist Newspaper Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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The yen reached a high of 116 yen to the dollar on Feb 22, 1993. Three reasons for the recent rise are year-end foreign asset profits, US Treasury Secretary Lloyd Bentsen's desire for a strong yen and the possibility of no more interest rate cuts by the Bank of Japan.
WHAT goes up must come down--unless, perhaps, it is the yen. On February 22nd it hit a record high against the dollar of YEN 116--a rise of 8% since the beginning of the month. That left the yen more than three times as strong as it was at the start of the 1970s, when it traded at YEN 358 to the dollar. During the past two decades of floating exchange rates, it has risen, with brief interruptions, by an average of 5% a ...
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