（゜Д゜;）英字新聞

Strong yen could hurt nation's economy

With the sudden rise in the yen's value, the U.S. dollar dropped below the 100 yen level for the first time in about 12 years.
This drop in the dollar is a serious cause of concern for the Japanese economy, which is already showing unsteady signs. It is necessary to pay close attention to these foreign exchange movements.
The dollar also has dropped significantly against the euro and other Asian currencies--the euro is currently at its highest level against the dollar. The dollar's fall against other currencies is nearly across-the-board.
With the impact of the U.S. subprime mortgage crisis becoming much more serious, concern over the U.S. economy has further mounted. It seems investors are selling more dollars out of fears of a U.S. recession.
Meanwhile, crude oil has topped $110 per barrel and looks set to go higher. The rise in oil prices is a sign that as financial markets destabilize, investors are shifting dollar assets into oil, gold and other spot commodities.
Markets wary of Fed boost
The U.S. Federal Reserve Board announced in coordination with four other central banks in Canada and Europe that it will lend up to $200 billion of Treasury securities to financial institutions in exchange for securities backed by mortgages. This announcement appears to have halted a chain reaction of falling stock prices on global markets and somewhat eased investor anxieties.
However, the markets also see the central banks' move as only a makeshift measure, and cracks are already appearing in market confidence.
Prices on the Tokyo Stock Exchange largely dropped Thursday due to the surging yen. The Dow Jones industrial average also has seen persistent volatile trading.
The greatest market worry is that there is as yet no fix to the subprime mortgage crisis. Policies by the U.S. government and the Fed to establish financial stability have failed to work. A feeling of uneasiness has spread across markets.
Dark clouds on horizon?
More difficulties probably await the Japanese economy. A booming U.S. economy and the weak yen have been a boon to Japan's economy, with export industries, such as automobile and electrical machinery, being the chief drivers.
But the double punch of the downturn in the U.S. economy and the appreciation of the yen may directly hit profits in these export industries. Furthermore, a delay in the recovery of corporate performances could influence individual incomes and dampen consumption.
As of October, many companies predicted the dollar would be at 115 yen for calculating their earnings for the March settlement term. Shortly after the New Year, many companies changed that estimate to 105 yen. But reality has even exceeded that prediction.
Indeed, even if the prices of raw materials, such as crude oil, rise, the burden of the price increase can be eased by the yen's appreciation. But with such large price increases, the benefits derived from this appreciation are limited.
With the triple whammy of the yen's appreciation, falling stock prices and the rise in crude oil prices, the stalemate regarding the appointment of a new Bank of Japan governor could work in favor of speculators. To avoid further complications, the nomination of a new central bank chief should be resolved as early as possible.