LONDON (MNI) – The Japanese authorities intervened in the foreign
exchange markets to the tune of Y692.5 billion in March, the Ministry
of Finance said Thursday.
The data from MOF confirmed that the Japanese authorities
intervened in the markets from March 18, although MOF did not confirm
the actual dates the Bank of Japan intervened on its behalf.
However, Japan Finance Minister Yoshihiko Noda had already
announced intervention had started on that Friday.
The yen-selling intervention was part of a co-ordinated move by the
Group of Seven industrialized nations, acting in concert to aid Japan in
the wake of the March 11 Tohoku-Pacific Ocean Earthquake and tsunami.
The move was triggered as the dollar-yen exchange rate fell to an
all-time low at Y76.25. The pair rebounded to Y81.75 as the Bank of
Japan started the intervention.
In a statement, the G7 said “excess volatility and disorderly
movements in exchange rates have adverse implications for economic and
financial stability. We will monitor exchange markets closely and will
cooperate as appropriate.”
The intervention in the currency markets was the first such action
by the Japanese authorities since September 2010. It was the first
co-ordinated intervention by the G7 nations since 2002.
The data released Thursday covers the period from Feb. 25 through
March 29, 2011.
— London Bureau: 00 44 20 7634 1631; ukeditorial@marketnews.com —
[TOPICS: M$$FX$,M$A$$$,M$J$$$,MMJBJ$,MGJ$$$,MT$$$$]
