The recent sharp rise in Japan‘s currency has worried the group of seven major industrial countries in the world. Last Friday, the Yen rose to a thirteen year high against the dollar which has raised a lot of concern around the world.

Japanese officials are worried that the explosive nature of their currency will affect their automobile trade as well as other export markets. With the currency so high, it could mean that people will no longer be able to afford Japanese products in the American market. “We are concerned about the recent excessive volatility in the exchange rate of the yen and its possible adverse implications for economic and financial stability,” the officials of the leading industrial countries have said.

The industrial countries have agreed that they have a shared interest in maintaining the financial system stable which could lead to a government intervention whereby they would by and sell currencies to keep them stable. As yet, the American market has never participated in such an agreement, but it may become necessary in the near future.

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