Conversely, the appreciation of the yen pushes up profits of import-oriented firms and serves as a tailwind for those firms considering expanding operations by acquiring overseas firms. However, it should be remembered that a balanced view is important when discussing the effects of a strong yen. I will now give you an example of just such a balanced view.
Trade statistics show that the weight of U.S. dollars used as settlement currency for exports declined slightly from 52.4 percent in the second half of 2000 to 48.6 percent in the first half of 2010, while that used for imports remained largely unchanged at slightly above 70 percent (Chart 6).