Forex Trading News – Japan’s emergency budget was confirmed today

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The Japanese parliament has given a unanimous vote to the four trillion Yen emergency budget, which is targeting to relief the deep wounds from the March 11 disasters after the earthquake and the tsunami. The 4 trillion payment (50 billion USD) it is considered to be the largest for the country in more than 60 years. However, the total cost of reconstruction was estimated to 300 billion US Dollars, which means that more packages will follow in the near future.

Although opposition parties have supported the first aid package, there are doubts if there will be unanimity among the parliament parties for the following emergency packages as tax hikes and borrowing from the bond markets will involve, as Japan is struggling for many years with enormous public debts. The 9.0 in Richter scale earthquake and the 7 meter tsunami that followed killed approximately 26,000 people and destroyed thousands of houses in the Northeastern coast, throwing the country into its worst crisis since Second World War The tsunami also caused leak of radiation from the Fukushima plant, awakening in Japan the horrific memories from Nagasaki and Hiroshima. The USDJPY pair is moving rather sluggishly the last few hours; it is now trading at 81.55.