Japan unveils USD 100 billion program to tackle strong yen

The Japanese government unveiled Wednesday a USD 100 billion program to help contain the rising yen, after the currency hit a post-war high of JPY 75.95 against the dollar in New York last week. The one-year package, announced by Finance Minister Yoshihiko Noda, is intended to promote overseas mergers and acquisitions by Japanese companies, which would make the most of the strong yen. The program will also allow the government to step up its monitoring of the foreign exchange markets and require major financial institutions to report currency-trading positions through the end of September, Noda told a news conference. The program will use the government\'s special foreign-exchange account, and the government-affiliated Japan Bank for International Cooperation will fund to help Japanese firms spur overseas investment and exports by small and mid-sized companies. A stronger yen hurts the nation\'s export-led economy, which has been gradually recovering from a slump following the March 11 earthquake and tsunami, as it makes Japanese products more expensive abroad and reduce exporters\' profits. It also encourages the nation\'s manufacturers to shift production abroad in search of cheaper costs. Noda also said the government will continue to closely observe the foreign exchange market and watch for possible speculative movements. \"We will take resolute action in the currency market if necessary,\" he said