The strong yen is a problem for exporters, but it also has positive effects in the economy. Investment and acquisitions made by Japanese in foreign countries hit a record high in the March 2011-March 2012 period, according to data from the Bank of Japan, quoted by Nikkei business newspaper.
Direct investment made abroad by private companies rose by 18 percent in the period, reaching the all-time-high Y46 trillion ($580 billion) level.
On the other hand, foreign holdings of Japanese debt has also hit a record high. Foreigners owned more than 8 percent of Japanese government bonds, the highest level since 1979, when data began to be tracked by the Bank of Japan.
The reason for this trend is mainly that investors in Europe, troubled by the public debt crisis, are seeking for haven destinations to place their money. Investors need “a parking place while the European sovereign crisis drags on,” explained a Goldman analyst quoted by the Financial Times.