Yen Weakens After Verbal Intervention

The U.S. dollar gained against the yen and the euro on Tuesday after Japanese authorities hinted at the possibility of intervention to stem an unwelcome rise by the country’s currency.

Japan Finance Minister Taro Aso said the world’s leading economies would find it acceptable for a nation to act against “one-sided, speculative” exchange-rate movements.

His comments were the latest in a handful of nods to intervention to depress the yen and aid Japanese exports, as the currency reached a 17-month high on Monday. The tougher rhetoric had an impact on Tuesday, as the dollar  spiked to change hands at ¥108.62, higher than ¥107.95 late Monday in New York.

via MarketWatch

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza