Minutes after the announcement, the Nikkei house table of contents shot up 100 points and the yen weakened against the dollar. The Bank of Japan responded to the emigrate in a weigh on release, saying that it "strongly expects that the act charmed by the Ministry of Finance in the unfamiliar exchange exchange will contribute to stable price crystallization in the market." Japan's economy, still struggling after the March 11 earthquake, tsunami and atomic crisis, has been hit compressed by the falling U.S. dollar.
Uncertainty by extensive markets over the U.S. obligation deal caused the dollar to plummet versus the Japanese yen, a currency seen as a riskless haven by investors.
Japanese automakers and electronics companies have seen the currency movement consume into their corporate profits as the dollar has sunk. Japan's exporters go on the broad call with the U.S. dollar, but then repatriate the funds to Japan in yen.
JP Morgan Japan estimates corporate profits have fallen approximately 5% in the end six weeks as the U.S. dollar has plummeted. Perhaps the hardest-hit followers is the world's largest automaker, Toyota.
The motor car maker estimates it loses approximately $385 million for every 1 yen increase up versus the dollar. By that estimate, in July, Toyota distracted more than a billion dollars based on the currency party alone. Toyota Motor Corporation this week, in announcing their first-quarter yield for the 2012 budgetary year, called the transfer class too much to bear. Senior managing appointee Takahiko Ijichi said, "I discern that it's our future to accustom to ever-changing exchanging rates. But this situation, where the yen has passed 80 yen and is now at 76 yen, for us exporters, it's very tough.
" CNN's Kyung Lah contributed to this report.
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