The International Monetary Fund said there is no indication that Japanese insurers are selling foreign assets to pay rebuilding claims in the wake of the March 11 earthquake and tsunami. And even if they were, the IMF believes it would not materially affect the yen’s value.
According to the IMF, the Japanese yen is broadly in line with long-term fundamentals despite the currency’s recent rise. In terms of economic damage, Japan’s economy will remain weak until power supplies are restored and should strengthen as the country rebuilds.
Source: Reuters