Japan Follows Swiss in Bid to Damp Currency

http://www.bloomberg.com/news/2011-08-04/japan-follows-switzerland-in-intervening-to-stem-currency-s-appreciation.html?cmpid=

Japan followed Switzerland in seeking to stem appreciating exchange rates that threatened to damage export competitiveness, selling the yen and pledging to inject 10 trillion yen ($126 billion) in funds to the economy.

The decision by Japan followed gains in the yen that saw it approaching a postwar high against the dollar. The current level is still about 4 percent stronger than the 82.59 average exporters used in profit forecasts in a Bank of Japan survey released last month. Toyota Motor Corp. sees a yen stronger than 80 as a brake on growth.

Mazda Vulnerability

Mazda, which exports about 80 percent of its cars, is basing the yen-to-dollar rate at 83 yen to the dollar, and 113 yen for the euro.