Yen rise could hit steel industry: Japan steel body
(Reuters)
26 November 2009
TOKYO - The yen’s strength against the dollar could have a major impact on Japan’s steel makers, auto, electronics and shipbuilding industries, the head of the country’s main steel sector body said on Thursday.
“The (yen-dollar rate of) 87 yen is an extraordinary level,” he told a group of reporters. “That will cause a big problem to steelmakers and our customers like carmakers, electronics manufacturers and shipbuilders because their export levels are now quite high.”
Shoji Muneoka, chairman of the Japan Iron and Steel Federation, also said the current level of the yen, which jumped to a 14-year high against the dollar on Thursday, could cause a second recession in Japan.
Muneoka, who is also the president of the world’s second-biggest steelmaker Nippon Steel Corp, said he hoped the authorities would take measures to stem the yen’s rise.
LONDON - After New Year cheer, reality is starting to bite. Several factors have doused the rallies in some key basic resources this year, including dollar strength and concern about regulation, but most noticeable are the steps taken by commodity consuming giant China to curb excessive loan growth.
WASHINGTON - U.S. wholesale inventories unexpectedly fell 0.8 percent in December, while sales rose 0.8 percent, a government report showed on Tuesday.
