The foreign-exchange market was on the lookout Friday for possible Japanese intervention to suppress gains in the yen following the U.S. Federal Reserveâ€™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%Â fell as low as Â¥77.39 after the announcement, down from Â¥77.87 the previous day, before recouping some of its loss to change hands at Â¥77.63 early Friday in Tokyo.
Japanâ€™s top forex-policy official at the Finance Ministry, Takehiko Nakao, said Friday he had discussed the yenâ€™s latest moves with Finance Minister Jun Azumi but wouldnâ€™t comment on any intervention plans or on whether the U.S.
via – MarketWatch
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