Japan'S Political Turmoil &Nbsp; Yen Goes Down

The turmoil in Japan's political situation has added to the recent turmoil in the foreign exchange market dominated by risk aversion. The Japanese yen fell sharply yesterday, and the US dollar was 92 against the yen.

After 8 months in office, Japanese Prime Minister Hatoyama Yukio announced his resignation on Wednesday, becoming the fourth consecutive leader in Japan to step down.

After the announcement, the yen week fell in Sanya, but because of the risk aversion, the yen benefited from its hedging attribute, and the decline was postponed for a while.

But then, Japanese finance minister Naoto Kan announced that he would run for the leader of the ruling party. The yen went down against the US dollar and launched an attack on 92.

Analysts pointed out that Naoto Kan was presumed to be the most likely successor, but he advocated a weaker yen policy, and the yen weakened.

Analysts pointed out that the impact of Japan's political changes on the market may be limited, because we are more concerned about the development of the euro zone debt crisis and whether the global economic recovery will be affected by the debt crisis.