The Japanese government intervened today in order to stop the gains of Japan’s currency, despite the candidate, who insisted on the intervention, lost the election as the head of the ruling party.
Yoshihiko Noda, the Minister of Finance, announced that Japan unilaterally sold yen today. Masaaki Shirakawa, the Governor of the Bank of Japan, said in his statement he hopes the intervention would stabilize the foreign exchange market. Yoshito Sengoku, the Chief Cabinet Secretary, claimed that the Finance Ministry considers 82 yen per US dollar would be appropriate level, at which the currency wouldn’t hurt the economy.
USD/JPY surged to 85.17 today as of 11:14 GMT after it opened at 83.02 and reached the intraday high of 85.71. EUR/JPY climbed from 107.91 to 110.45, following the jump to 111.10.
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