31.   More Japanese investment abroad would weaken the yen by creating more demand for foreign securities and the currency needed to buy them.

32.   Record low rates in Japan have helped weaken the yen by making returns on yen-denominated deposits and other assets less attractive.

33.   So one plausible consequence of a shift to expectations of inflation would be a rush to foreign investments, which would weaken the yen still more.

34.   Some traders speculated that the Finance Ministry will unveil more deregulation measures today to help Japanese invest more abroad and weaken the yen.

35.   Some traders said falling Japanese stock prices could further weaken the yen.

36.   Such measures have helped weaken the yen by prompting expectations Japanese will sell yen for other currencies to invest abroad.

37.   Such speculation grew after the Ministry of Finance yesterday unveiled new measures to encourage Japanese investment overseas and weaken the yen.

38.   That and a shrinking Japanese trade surplus with the U.S. have weakened the yen and strengthened the dollar.

39.   Such measures are effective to weaken the yen because Japanese need to sell yen for other currencies to invest abroad.

40.   That helps weaken the yen against the dollar and other major currencies because Japanese investors usually need to sell yen for other currencies when investing abroad.