Weak yen helps cheapen protection on Japanese exporters

The US dollar appreciated to ¥124.8 on Monday from ¥122.5 last Friday, after Japan's Finance Minister Masajuro Shiokawa said the yen was overvalued and that a range of ¥150-¥160 to the dollar would be beneficial to the Japanese economy.

Sentiment on Japanese exporters such as computer makers Fujitsu and NEC improved, and the companies’ credit default swap spreads tightened in by about 20bp this week from last Friday’s levels. The cost of protection on Fujitsu’s five-year debt contracted to 2