In the foreign exchange market, the yen fell moderately towards the end of July and the yen-dollar exchange rate temporarily rose to around 110 yen. The yen is currently being traded in the range of 107-109 yen to the U.S. dollar. With regard to corporate finance, private banks have basically retained their cautious lending attitude.
However, constraint that had been caused by severe fund-raising conditions and insufficient capital base has eased considerably. Given this, major banks continue to be more active in extending loans, while carefully evaluating the credit risks involved.