The dollar fell back below ¥118 in Tokyo trading on Friday on a verbal intervention by the government after it briefly shot up to a seven-year high slightly below ¥119 the previous day.
At 5 p.m., the dollar stood at ¥117.56-57, down from ¥118.57-59 at the same time Thursday. The euro was at $1.2544-2545, slightly up from $1.2535-2535, and at ¥147.48-49, down from ¥148.68-69.
The greenback plunged as low as around ¥117.30 after Finance Minister Taro Aso told a press conference in the morning that the yen had weakened “too fast” against other major currencies over the last week.
“The remarks by the finance minister warning against a rapid fall of the yen had a greater-than-thought impact, as profit-taking activities were strengthening after the dollar soared to near ¥119, apparently overshooting, and then stalled,” an official at a foreign exchange margin trading service provider said.
“The market appears to be calmer” after the greenback has failed to top the ¥119 threshold, an official at a major securities firm noted.
In the afternoon, the U.S. currency temporarily pared losses to almost recover the ¥118 level, as the benchmark Nikkei stock average recouped losses to finish in positive territory.
via Japan News