James McKee

Standard and Poor Drops Japan Rating



Posted: Wednesday, April 27, 2011

by James McKee
http://www.forex.tradingcharts.com

Japan’s recent crisis has resulted in a severely decreased rating from the S&P 500, the index has given Japan a negative rating.  While this does not necessarily have catastrophic implications for the near future it does send a sour note to investors.  The Japanese economy has just received another bump in an already very rocky road to recovery.  The Japanese Yen is also becoming unstable on the online forex exchange, suffering a rising value that hurts Japan’s export-appeal.  For this and many other reasons it is very important that Japan take the proper steps to recover as soon as possible.

The road to recovery for Japan does not look like it will be an easy one by any means, and in fact there is a great deal of likelihood that the nation will have to borrow large sums of money in the near future from other Western nations.  The tragedy that has befallen Japan has sunk their economy to the point of requiring decades of effort to jumpstart.  The ordeal Japan is suffering is being felt around the world through a lack of Japanese imported goods such as electronics and automobiles.  Foreign workers who work at Japanese manufacturing plants in the United States and Europe have been unable to work in many cases.

While the Japanese Yen has never been an especially stable currency the events surrounding the tsunami and subsequent nuclear crisis have sent it into a previously unseen state of flux.  The GBP/JPY pair has become especially volatile which has resulted in large swings The Japanese Yen has also seen an abnormal amount of movement against the USD on the online forex exchange recently by rising sharply.  It is only a matter of time before the Bank of Japan becomes involved with the crisis and attempts to use bond sales to control currency value.

The author is a Forex trader and financial analyst residing in Denver, Colorado.  To stay up to date on all the latest developments in the financial world and beyond be sure to stay up to date with the latest forex quotes.
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