bloomberg.com: Fukui Pressured to Raise Rates as Yen Is Sent Abroad

The concern: The longer they wait, the greater the chance that external forces lead to a sudden, sharper rebound that might cripple Japan's economy and shake consumers like Takeda. ``A jump in the yen could cause a disaster,'' says Hiroshi Shiraishi, an economist at Lehman Brothers Japan Inc. in Tokyo. ``It would probably hurt the whole economic cycle, starting from exports.''
The trigger might come in the form of a shock overseas that prompts fund managers to dump risky holdings financed by the so- called carry trade, in which yen borrowed at low Japanese rates are invested in higher-return securities in other countries.