The Japanese yen and related currency exchange traded funds have made moves higher on the news that Japan’s new prime minister is Yoshihiko Noda, previously the finance minister. A new approach will be taken to address Japan’s economic troubles.
Noda is willing to raise Japan’s 5% sales tax in an effort to reduce the nation’s debt and will try to raise other taxes to secure funds for reconstruction after the earthquake and tsunami, reports RTT News.
Noda said the government “should principally respond by considering the basic guidelines and law for reconstruction,” on RTT News, shortly after his election.
News of Noda’s election forced the yen higher than the the euro and the Swiss franc, as the franc has been on a downtrend due to an increased risk tolerance in the market. [Japanese Yen ETFs Back Near Record High]
The Japanese yen intervention has reached a record $58.8 billion in spending, according to Ministry of Finance data. The latest round of yen selling far exceeded what was sold on September 16 of 2010, 2.125 trillion yen, reports Reuters. [Japanese Yen ETF Shakes Off Intervention]