Japan goes on intervention watch after Fed’s QE3

The foreign-exchange market was on the lookout Friday for possible Japanese intervention to suppress gains in the yen following the U.S. Federal Reserve’s announcement of fresh quantitative easing Thursday, according to various reports.

Federal Reserve Chairman Ben Bernanke addresses three main concerns people have about the Federal Reserve’s monetary policy; Fed purchases, low returns and inflation of the economy.

A rate check, in which the bank checks on dollar-yen levels with traders, is often a precursor to intervention.

The U.S. dollar USDJPY +0.13%  fell as low as ¥77.39 after the announcement, down from ¥77.87 the previous day, before recouping some of its loss to change hands at ¥77.63 early Friday in Tokyo.

Japan’s top forex-policy official at the Finance Ministry, Takehiko Nakao, said Friday he had discussed the yen’s latest moves with Finance Minister Jun Azumi but wouldn’t comment on any intervention plans or on whether the U.S.
via – MarketWatch

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