Dollar Surges Above ¥90

The good news continues in relation to the exchange rate of the U.S. dollar and the Japanese yen.

Jiji Press reports:

 Tokyo, Jan. 18 (Jiji Press)--The dollar surged above the 90-yen threshold for the first time in about 31 months in Tokyo trading on Friday, on the back of speculation about additional monetary easing by the Bank of Japan.

At 5:00 PM today (Japan time), the dollar was quoted at 90.02-02 yen.  This will help Japanese tourism as it makes a Japan vacation more attractive to American tourists.

In a related article, The Daily Yomiuri reports:

A desirable exchange rate between the yen and the U.S. dollar would be 95-105 yen to the dollar, Fujio Mitarai, former chairman of the Japan Business Federation (Keidanren), said in an interview with The Yomiuri Shimbun. 

"If the yen-dollar exchange rate stayed around 100 yen, give or take about 5 yen, it would provide the nation with a good balance of imports and exports," Mitarai said. "As a cheaper yen increases import costs, it makes it possible for companies to maintain competitiveness in exports."