Monday, 31st October 2011
In Business In Japan,
Japan intervenes with yen once more
Japan was forced to step in and intervene with the yen for the second time in three months on Monday (October 31st), after it reached a new high against the dollar.
The relative strength of the currency compared to the dollar and euro is hurting exporters, who make up the majority of the country's economy, as their goods are rising in price in these territories.
Furthermore, the government said that excessive speculation was hurting the country's economic outlook further, and encouraged it to step in, Reuters report.
The intervention helped increase the value of the dollar by four per cent, its highest one-day gain in three years, with finance minister Jun Azumi telling reporters in Tokyo that the government would continue to intervene in the market until it was happy with the results.
Fumihiko Igarashi senior vice minister of finance, is reported to have said that further market action is likely.
"I don't think intervention is ceased yet," he was quoted telling reporters.
Despite several interventions over the previous year, the yen continues to rally, due to low confidence in the US and European markets, prompting some analysts to suggest that this latest market action will do little to abate the currency's rise.
Posted by Susan Ballion