Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Asia Forum -- Ignore unavailable to you. Want to Upgrade?

To: MikeM54321 who wrote (4364)	6/10/1998 8:59:00 PM
From: Otimer	Respond to of 9980

F.Y.I. Bank of Montreal's Johnson on Asia Currencies: Currency Comment Bank of Montreal's Johnson on Asia Currencies: Currency Comment Chicago, June 10 (Bloomberg) -- Earl Johnson, international economist at the Bank of Montreal, comments on the implications of the weak yen for the currencies of China and other Asian nations after the yen fell to a seven-year low of 141.67 to the dollar. If we go to 150 yen or weaker, you've got a situation that's almost intolerable in Asia,'' Johnson said. ''There's more talk about the (Chinese) yuan devaluing. If the yuan devalues, the Hong Kong dollar goes. If that goes, you've got another round of 15 to 20 percent devaluation throughout the region. Suddenly you've got a very serious situation.'' The yen's 7.7 percent slump against the dollar this year makes Japan's exports cheaper and puts pressure on its neighboring trade rivals to let their currencies weaken to boost their own exports. To keep that from happening, the U.S. may be forced to sell dollars to lift the yen, he said. I think the U.S. can't let the dollar go to 160 or 170 (yen). It's just too horrible a scenario if we let the Chinese devalue and the whole area goes down the tubes. That's a scenario we can't let happen.'' The U.S. may step in between 145 and 150 yen and say, 'We just can't let this happen. There's nothing economically in the next month or two that's going to change (Japan's) situation. Either there's intervention or the yen continues to collapse,'' Johnson said. 16:30:43 06/10/1998 Any redistribution of Bloomberg content, including by framing or similiar means, is expressly prohibited without the prior written consent of Bloomberg L.P. Any reference to the material must be properly attributed to Bloomberg News. The information herein was obtained from sources which Bloomberg L.P. and its suppliers believe reliable, but they do not guarantee its accuracy. Neither the information, nor any opinion expressed, constitutes a solicitation of the purchase or sale of any securities or commodities.(C) Copyright 1998 Bloomberg L.P. BLOOMBERG, Bloomberg News, Bloomberg Financial Markets, Bloomberg Television, Bloomberg News Radio are trademarks, tradenames and service marks of Bloomberg L.P.