Economic Comment: A Perspective View of Yen's Turbulence 　　The Yen's exchange to US Dollars fluctuated sharply last year, which began to devalue from June 8 and dramatically rebounded from early September last year. The lowest point was 147.41 Yen to one Dollar on July 13 while the highest level was placed at 116.58 to one on October 9. The lowering of the rates was due to a worsening of the Japanese economy, a cub from the Asian financial crisis, the instability of the Japanese government and a currency policy change of the United States. The rebound of the Yen had resulted from an ease of the Asian financial crisis, the breaking out of economic crisis of the Russian economy and fluctuations of the Latin American finance. Appreciation of the Yen is not an optimistic phenomenon for Japan because it adds more unpredictability to the weak Japanese economy. At the same time, it increases risk and fluctuation range on the global financial market. 　　For exchanges rates of the Yen to Dollar are controlled in the main by the United States Japan is only in a negative position, depending on the support of confidence of the US capital markets and withering of the Japanese capital market. 　　The influence of the macro economic factors to exchange rates has become weaker, which has led to exchange rates that will not be affected by the economic condition of the United States and Japan. 　　To stimulate Japan's economy the Japanese government strengthens its financial expansion by sacrificing its financial balance and adding more fluctuation factors to Yen's exchange rates. 　　The insufficiency of funds on the Japanese government's budget will enlarge the possibility for new financial crisis which will do no good to the stability of Yen's exchange rates. 　　 　　 Indepth 1999-01-04 Page6