By IANS,
Tokyo : The Japanese government Tuesday announced a policy package to tackle the recent sharp rise of the yen by offering financial incentives to businesses to stay at home and not move out overseas.
The previous measures taken by the Japanese government had failed to ease the strengthening currency in an effective manner, Xinhua reported.
The Japanese government, under the fresh package, plans to increase subsidies for companies that launch new facilities in Japan and encourage firms to develop overseas energy resources.
The measures come at a time when domestic manufacturers appear set to accelerate the shift of production abroad amid a rising yen.
The yen briefly hit a post-war high against the US dollar in August. The rising trend has negatively impacted the global competitiveness of Japanese exporters and eroded their earnings.
The package will be financed by a planned third extra budget for fiscal 2011.