The Japanese Yen's rally remained intact, today despite the G7 concerns about disproportionate volatility in the Japanese Yen, while the U.S. Dollar hit a 2-year high against the Euro as investors moved out of risky assets.
The Japanese Yen was perched below a 13-year high against the U.S. Dollar but surged to its highest since the middle of 2002 against the Euro.
Finance authorities of the G7 issued a statement saying that it was worried about recent excessive fluctuations in the Japanese Yen and that they would continue to watch markets very closely, and cooperate if the need arises, raising the possibility of coordinated currency intervention. Today, Shoichi Nakagawa, Japanese Finance Minister said that he was monitoring currencies with “great interest.”
On October 27, 2008, at 12:00 GMT, the U.S. Dollar fell by1.1% against the Japanese Yen from last week’s trade in the U.S. of 93.21 Yen, having jumped to 94.50 Yen following the G7 warning. Last Friday, the U.S. Dollar fell to 90.90 Yen, a 13-year low.
The Euro also lost ground by 2.3% to 116.20 Yen, after falling to 113.64 Yen -- a 6½ year low. The Euro fell by 2% against the U.S. Dollar to $1.2335.