Yen's Renewed Strength Weighs on Japan's Exporters

Japan's economy is showing signs of life and manufacturers are again ramping up production, after months of cutbacks. Even the central bank, whose forecasts tend to rely on a more cautious wait-and-see approach, has become more optimistic. On June 16, the Bank of Japan said that the recession—the country's worst since World War II—no longer seems as bad as it was earlier this year, after the bank's policy board decided to keep its target for key short-term interest rates at 0.1%. "In the coming months, Japan's economy is likely to show clearer evidence of leveling out," the Bank of Japan said in a statement.

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