— US Dollar Jumps to Y84.36 High Vs Yen in the Aftermath
TOKYO (MNI) – The Japanese Finance Ministry intervened in the
foreign exchange market Wednesday for the first time since March 2004 to
counter the yen’s rise to a fresh 15-year high, wire reports said.
Japanese media outlets first reported the rumored intervention,
which triggered a vicious spike in the U.S. dollar against the yen spot
rate, from around Y82.88 to Y83.91 initially.
Japanese Finance Minister Yoshihiko Noda then met reporters at the
Finance Ministry and confirmed that intervention had been carried out,
triggering another move in dollar-yen through Y84.00 for a high of
Y84.36 so far.
According to wire reports, Noda said yen gains had gotten steeper
since Tuesday and thus the authorities stepped in to limit the “abrupt”
moves.
The intervention was carried out around 10:35 am Japan time, Noda
said. He also added that Japan had informed “other nations” about its
intent to intervene, but wouldn’t comment on how they reacted.
Noda also said the ministry would reveal at a later date how much
of the nation’s foreign exchange reserves were used in the attempt to
stem the yen’s rise, which Japanese officials and exporters have warned
could derail economic growth.
[TOPICS: M$J$$$,M$A$$$,MGJ$$$,MT$$$$,M$$FX$]
