By: Barbara Zigah
In Asian trading, the Japanese Yen remains under pressure against the U.S. Dollar, and although losses were generally limited in somewhat subdued trading, most market players believe that the G7 will likely again intervene to curb the Yen’s rise. Analysts believe, however, that the threat of the G7 intervention isn’t intended so much as to reverse appreciation in the Yen as it is to stifle some of the volatility associated with it. As reported at 3:39 p.m. (JST) in Tokyo, the U.S. Dollar gained .4% against the Yen to trade at 80.93 Yen; during Friday’s trading session, the U.S. Dollar has traded nearly 4% higher, to 82.00 Yen.
Friday marked the first time in more than 10 years that the G7 jointly moved to intercede in the currency markets. Three of the seven represented central banks, Bank of Japan, Bank of Canada and the ECB, jointly conducted approximately $32.3 billion (equivalent) of Yen-selling intervention; figures for the Federal Reserve and the Bank of England were unavailable. Before the intervention occurred, the Japanese Yen had risen to a record high against the U.S. Dollar, striking 76.25 Yen. One trader in Hong Kong belies that the Japanese central bank will likely sell more Yen should the greenback fall below 80.00 Yen.