Tokyo puts brake on yen to help exports
Tokyo (AsiaNews/Agencies) –Japanese authorities reacted negatively to the yen’s sudden rise yesterday, which touched a 15-year high against the US dollar. This morning, the central bank stepped to sell yen in currency markets. This is the first time Japanese monetary authorities intervened since March 2004; the main goal was to protect Japan’s exports.
In yesterday trading, the US currency hit 83.36, a significant loss compared to 83.71 just two days earlier. A few hours before, the greenback even hit 83.25, the best rate since May 1995.
Following Japan’s action, the dollar regained lost ground to stabilise around 85.
This time, Japanese authorities intervened directly in money markets, selling yen. According to the Jiji news agency, Japan sold more than 100 billion yen or US$ 1.21 billion.
Finance Minister Yoshikiro Noda said Tokyo acted unilaterally, adding that it remained in contact with other monetary authorities.
The US Federal Reserve and Treasury Department did not immediately comment the Japanese move.
Meanwhile, the Bank of Japan said it was ready to continue its action, whilst bank governor Masaaki Shirakawa said that the institution would keep on providing adequate liquidity to markets.
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