By: Barbara Zigah
The Japanese Yen moved higher in Asian trading today, though investors remain skittish and worried that another intervention by the Ministry of Japan might be forthcoming should the U.S. Dollar slip below 85 Yen. It was estimated that Japan sold nearly $23 billion worth of the Japanese currency in yesterday’s trading day, a new record high. One trader at a bank in Japan predicts that intervention may continue for a long while, as he feels that not that they (the Ministry of Finance) can not just stop what they have started. Seemingly to bolster the trader’s comments, Naoto Kan, the Japanese Prime Minister confirmed that decisive steps would be taken by Japanese authorities should the Yen rise.
Attention is also being turned to the United States as the Secretary off the U.S. Treasury Department, Tim Geitner, is expected to comment on the Japanese intervention, which effectively helped to boost the greenback by more than 3%, which amounted to the largest gain in a single day versus the Yen in nearly 2 years.
As reported at 3:25 p.m. (JST) in Tokyo, the U.S. Dollar was trading against the Japanese Yen at 85.30 Yen, a decline of nearly .5%, and analysts attribute that to Japanese exporters’ selling and profit taking.
Japanese Exporters Push Yen Higher on Profit Taking
After working on Wall Street, Barb began her second career as a freelance writer at Daily Forex, where the CEO recognized fresh, untapped potential and was willing to give her a try. She’s never looked back. Since then, she’s worked steadily as a freelance writer and editor in the financial services and Forex-related industry.