Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

FOREX-Dollar jumps vs yen after Japan intervenes

Published 09/14/2010, 10:27 PM
Updated 09/14/2010, 10:32 PM

* Japan intervenes for first time in 6-½ yrs

* Dollar/yen rises 1.6 pct

* Noda says will continue to take decisive action

TOKYO, Sept 15 (Reuters) - The dollar jumped against the yen on Wednesday after Japan intervened in the currency market for the first time in 6-½ years to stem the yen's persistent strength.

Finance Minister Yoshihiko Noda said Japan intervened in the currency market as the impact of the yen's rise on the economy could not be ignored, adding that Japan will continue to take decisive action.

"We will take decisive steps if necessary, including intervention, while continuing to closely watch currency market moves from now on," Noda told reporters at a hastily arranged news conference.

The Bank of Japan also said it will provide ample funds to markets while keeping very easy monetary conditions.

The dollar rose about 1.6 percent to around 84.33 yen, as intervention triggered a wave of stop-loss buying in the dollar.

Earlier the greenback hit a 15-year low of 82.87 yen as the dollar was hurt by talk that the Federal Reserve could be nearing more quantitative easing.

"I guess the Japanese authorities may want to bring the dollar/yen up to around 85 yen," said a trader at a Japanese financial institution.

Japan has not intervened in currency markets since March 2004, when it ended its 15-month campaign to sell the yen in currency markets.

The yen had gained fresh momentum on Tuesday after Japanese Prime Minister Naoto Kan won a leadership ballot against a rival seen as more willing to intervene against the yen.

The yen also weakened more than one percent against other major currencies. The Australian dollar rose to around 79.30 yen, its highest in more than five weeks.

The euro rose about 1.6 percent to around 109.65 yen. (Editing by Edwina Gibbs)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.