Shirakawa Bows to Yen Bulls as Intervention Fails
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Bank of Japan Governor Masaaki Shirakawa is being steamrolled by investors pushing the yen toward a post-World War II high against the dollar, negating his attempts to weaken the currency.
After depreciating 10.4 percent in the first quarter, the most since 1995, the yen is up 12.5 percent since March, the best among 10 developed-nation currencies, according to data compiled by Bloomberg. The rebound from an almost 10-month low reached March 21 is set to continue as the fallout from Europe’s debt crisis rattles markets from the U.S. to China, say an increasing number of investors and strategists from Tokyo to London and New York.