The new pegboy: the YEN

[Taro Toporific]

Pegging the yen
Sure the euro's gaining ground on the dollar. But not the yen. Has Japan put on the fix?
CNN/Money May 29, 2003: 8:48 AM EDT
..it's beginning to look like Japanese officials are so eager to keep the yen from gaining against the greenback that they have virtually fixed it to the dollar...
... First, keeping the yen weak helps keep Japanese products relatively cheap in dollar terms, and this helps Japanese companies stay competitive with their U.S. counterparts around the world.
But more importantly, keeping the yen in line with the dollar helps stem Japan's loss of market share to China. The Chinese currency, the renminbi, is fixed to the dollar, so every time the dollar weakens against the world's other major currencies, it weakens, too