ESSEN, Germany (AFP) - Japanese Finance Minister Kojii Omi has hinted that the yen could strengthen as the economy improves, responding to concerns in Europe over the current weakness of the Japanese currency.
"Exchange rates should reflect economic fundamentals," Omi (NYSE: OMM - news) told journalists on the sidelines of the G7 finance meeting here.
"The Japanese economy is recovering a steady pace, so I'll try to make (the other G7 members) understand the Japanese situation," he said.
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I wonder how Japan is going to manage its yen because it is just incredible low compared to the Euro. I am not an expert on the economy, but I would like to know more about it.
1. Why is the Yen this low?
2. What can Japan do about this?