Wednesday, 15th September 2010
In Business In Japan,
Japan bank intervention 'weakens yen'
The yen fell against the dollar on the currency markets today (September 15th) after the Japanese government opted to intervene.
The currency had been gaining in strength, affecting Japan's export-driven economy, but the intervention has helped to knock the yen back to around 85 per dollar.
A state sell-off of yen could go on for a second day, Bloomberg reports, noting that such a move would help to further protect the yen from its recent climb against the dollar.
There has been talk for some weeks of government intervention, as the yen continued to gain strength. The last time the Japanese government intervened in the currency markets was in 2004.
Despite the short-term success of the move, some analysts remain unconvinced of the medium-term benefits to the currency.
Tohru Sasaki, from JPMorgan Chase & Co in Tokyo, told the Bloomberg news agency: "In the medium-term it can't change the overall direction."
Written by Susan Ballion