21. Companies more dependent on domestic demand will be hurt by the falling yen, which will drive up import prices, and by the fiscal tightening, Fujii said. 22. For now, the falling yen has become a sell signal on the world equity markets. 23. Government bonds fell for the first time in three days as a falling yen decreased the allure of yen-denominated debt. 24. He warned that the territory could be further buffeted by the falling Japanese yen and other Asian currencies. 25. In fact, the falling yen would help Japanese exporters by making their products cheaper in world markets. 26. Marvin also said concerns over the effects of the falling yen were premature because it took considerable time for currency fluctuations to have an impact. 27. Officials also worry that a falling yen will spread to other currencies in Asia, creating a contagion of currency depreciations in already fragile financial markets. 28. Prices of all three are comparable when similarly equipped, and the falling yen may help the Japanese hold the line on costs. 29. Still, the Bank of Japan is defending the yen because a swiftly falling yen can undermine already flagging investor confidence in Japanese financial assets. 30. The falling yen and the stronger economy, which raises the likelihood of accelerating inflation, could erode the value of Japanese bonds, thereby boosting the yield. |