As Japan continued to battle an ongoing nuclear crisis in the wake of the earthquake and tsunami, its currency continued to fall on the world market thanks to a G7intervention on Friday, the first since 2000, that kept speculators at bay.
Warren Buffett also termed the country’s current situation a “buying opportunity,” and the World Bank said that, while the country’s economy would remain depressed through the middle of 2011, growth from rebuilding would result in a boost to the nation’s economy and end a “temporary growth slowdown.”
Reuters reported that the yen continued to fall on Monday after the G7 stepped in on Friday to prevent speculators from driving the currency’s value even higher; the yen had risen to a post-World War II high of 76.25 against the dollar on Thursday as speculators’ demand for the currency anticipated repatriation of funds for rebuilding and stop-loss orders were triggered by the dollar’s fall, driving it down even further.
The G7 intervention appeared successful, however, as Monday saw the yen extend its fall on the expectation of further intervention should the trend reverse. Closed markets in Japan also contributed to lower liquidity.
Warren Buffett also voiced his opinion that the earthquake presented investors with a rare opportunity. In the report, he said, “It will take some time to rebuild, but it will not change the economic future of Japan.”