Japanese Finance Minister Hirohisa Fujii said, the United States dollar (U.S.) is still the strongest currency in the world. Naturally, if the Tokyo maintain a large stock of foreign reserves in U.S. dollars.
“Clearly, the U.S. dollar is still the strongest currency in the world,” Fujii said at a press conference yesterday. “This is what causes nations to maintain foreign reserves in a strong currency. It also contributes to further strengthen the U.S. dollar,” he added.
Currently, Japan is the second largest country after China in the possession of foreign exchange reserves in dollars AS.Tokyo not give details on the amount of foreign exchange reserves in dollars AS.Tapi, most believe Japan’s foreign reserves rose as a result of the strengthening yen intervention in the past.
Japan is believed to sell the yen as an effort to muffle the strengthening yen. Fujii said, Japan should not try, artificially, to weaken their currency to boost export competitiveness mereka.Namun, he also emphasized that Japan does not support the excessive strengthening of the yen.
In London, the euro exchange rate against the U.S. dollar rose to the highest position for 14 months. Euro traded at the price of USD1, 5035 or rose from the position on Friday (23/10) at $ 1, 5007. Forex traders argue, pushed the euro to strengthen China-step increase ownership of the European currency.
While in Asia, the euro on Monday (26/10/2009) traded in the $ 1 level, 5064, or through the highest level on 11 August 2008.Nilai dollar against the yen on Monday, weakened to 91.76 yen from the day position 92.07 yen Friday. “Related financial news Central Bank of China (PBOC) is obtained from the research report said China will increase ownership euro and yen,” said analyst Brian Dolan Forex.com.
“As a result, the euro exchange rate against the U.S. dollar rose to the highest position in the last 14 months.” China has increased investment for his own foreign exchange reserves worth $ 2, to 27 billion U.S. government bonds. Beijing is also trying to diversify its investments into other currencies to increase the yield during the global financial crisis.
