Fuckers: Group of Seven finance ministers agreed to joint intervention to weaken the yen

The U.S. dollar and euro surged against the yen after the Group of Seven finance ministers agreed to joint intervention to weaken the yen, as Japan struggles with multiple natural disasters and an ongoing nuclear emergency.

The dollar spiked as high as Y81.51 from around Y79.50 earlier, as G-7 finance ministers issued a communique following a conference call. The dollar was recently at Y81.49.

Traders said the united stand added "clout" to the announcement. It marked the first joint G-7 intervention since 2000.

"We express our solidarity with the Japanese people in these difficult times, our readiness to provide any needed cooperation and our confidence in the resilience of the Japanese economy and financial sector," the communique said. "We will monitor exchange markets closely and will cooperate as appropriate."

Japan's finance minister told reporters that market intervention that occurred from 0000 GMT was from authorities in Japan, and each G-7 country would intervene in their own market.

"At a time when Japan is in a difficult situation, it is extremely significant that G-7 authorities agreed to act in concert and cooperate for the stability of the markets," Yoshihiko Noda said.

Dealers said the U.S. dollar was likely to continue rising against the yen over the next 24 hours as central banks take their turn at providing support.

"It looks like central banks will intervene as their market opens, which means round the clock intervention and support. We'll probably see dollar/yen two or three big figures higher over the next 24 hours," said Richard Grace, head of currency strategy at the Commonwealth Bank.

Westpac Global Markets strategists Sean Callow and Robert Rennie said that with the Bank of Japan flooding markets with liquidity in recent days, "this yen intervention is likely to be successful."

The G-7 action was more about preventing a one-sided speculative market than the actual level of the yen, they added. "The G-7 does not like one-sided speculative markets."

The euro also surged against both the yen and the greenback on the G-7 announcement on expectations the European Central Bank will do its part to keep the Japanese currency low. There has been no indication from the central bank yet that it has intervened.

"If the ECB is ever to step into the market, that will be during European trading hours, not Asian," one dealer said.

After the G-7 announcement the euro climbed to as high as US$1.4079 from US$1.4020 in late New York and Y114.69 from Y110.62.

The euro's and dollar's rallies came against a backdrop of escalating tensions in the Middle East with the United Nations earlier sanctioning a no-fly zone over Libya, setting the stage for a potential vote on a military move within a few hours.

The Pentagon was already fine-tuning military options for "serious" strikes against ground and air targets should the White House order them, U.S. defense officials said.

Nymex crude oil futures were recently $1.51 higher at $102.93 a barrel on Globex.

Latest Previous %Chg Daily Daily %Chg
Dollar Rates 2150 GMT High Low 12/31

USD/JPY Yen 81.30-32 78.96-01 +2.96 81.48 78.99 +0.10
EUR/USD Euro 1.4063-66 1.4025-26 +0.27 1.4078 1.3978 +5.18
GBP/USD Sterling 1.6144-47 1.6135-40 +0.06 1.6156 1.6097 +3.55
USD/CHF Swiss Franc 0.9068-73 0.8983-89 +0.95 0.9090 0.8976 -15.25
USD/CAD Canadian Dlr 0.9829-34 0.9854-56 -0.25 0.9865 0.9825 -2.00
AUD/USD Australian Dlr 0.9923-26 0.9801-06 +1.24 0.9937 0.9779 +1.40
NZD/USD New Zealand Dlr 0.7276-80 0.7170-80 +1.48 0.7285 0.7176 -6.56

Euro Rates

EUR/JPY Yen 114.32-36 110.74-78 +3.23 114.50 110.72 +5.28

Fuckers: Group of Seven finance ministers agreed to joint intervention to weaken the yen Futchart

ANCAPS: ANARCHO-CAPITALISTS

What else can hit Japan next...

It'll probably be a bloody meteor...

How could pounding a currency help its country?!

I'm surprised the Yen didn't tumble after the quake, as the NZ$ did.

Quote :: How could pounding a currency help its country?!

Cheaper imports for the West... so in that sense, it's easier for Japan to export...

But that's not what's motivating them...

Market manipulators...

:Grrr:

CovOps wrote:

Quote :: How could pounding a currency help its country?!

Cheaper imports for the West... so in that sense, it's easier for Japan to export...

But harder for Japan to import. It means they have to export more stuff to get a set amount of imports! i.e., they are poorer! Thumbs down

Depends if they import more than they export...

Fuckers: Group of Seven finance ministers agreed to joint intervention to weaken the yen

Fuckers: Group of Seven finance ministers agreed to joint intervention to weaken the yen

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