Yen Drops as G7 Does Not Object Interventions

The Japanese yen dropped today after Finance Minister Jun Azumi said that the Group of Seven is not going to object interventions to contain big currency move. That leaves room for more attempts to weaken the currency by the Bank of Japan.
Azumi stated:

I said at today’s conference that I want G-7 members to share this agreement, which states that excessive and disorderly moves of foreign exchange rates would have a bad effect on economic activities and finances and that we will closely consult and cooperate appropriately in the currency market. There were no oppositions from G-7 members about this statement of mine.

Japan’s central bank has long been trying to weaken the yen, but to no avail. The currency’s role as a safe haven attracted traders to big disappointment of the BoJ. Some economists question the status of the yen as a safe currency, yet investors need shelter from the financial turmoil and the currency did not fail them so far.
USD/JPY was up from 78.32 to 78.74 as of 23:07 GMT today. EUR/JPY managed to rise from 97.92 to 98.03, erasing the previous drop to 97.04. GBP/JPY ticked up from 120.49 to 121.08, following the earlier decline to the daily minimum of 119.73

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