ID :
204635
Wed, 08/31/2011 - 19:02
Auther :
Shortlink :
https://oananews.org//node/204635
The shortlink copeid
Japan sold 4.51 tril. yen in Aug. forex intervention+
TOKYO, Aug. 31 Kyodo -
Japan's monetary authorities sold 4.51 trillion yen in the foreign exchange market in August to stem the sharp rise of the Japanese currency against the U.S. dollar and other major currencies, the Finance Ministry said Wednesday.
The amount, if expended on just one day, would be the biggest on record. The ministry did not reveal how many times it and the Bank of Japan stepped into the currency market between July 28 and Aug. 29, and such detailed information will be announced in November.
On Aug. 4, Japanese monetary authorities said they had conducted a unilateral intervention, briefly pushing the dollar higher by about 3 yen to around 80 yen. But the U.S. currency soon lost ground and plunged to a fresh postwar low of 75.95 yen at one point on Aug. 19.
On Wednesday, the dollar mainly traded at around 76.60 yen during Tokyo trading hours, with investors remaining cautious about additional intervention by the central bank, which acts as the ministry's agent.
In the past, Japanese monetary authorities also intervened on Sept. 15, 2010, dumping 2.12 trillion yen for dollars, the current one-day record. They also spent 692.5 billion yen on March 18 this year, when Japan took concerted action with the other Group of Seven advanced economies to weaken the yen.
Finance Minister Yoshihiko Noda, who will soon become Japan's new prime minister, has said he will continue to closely watch for any speculative moves in the market and take ''decisive action'' when necessary, a mantra that suggests Japanese authorities are ready to step in and address excessive exchange rate volatility.
The stronger yen has hurt the profitability of Japanese exporters and sparked fears that domestic manufacturers might accelerate their shift of production abroad in pursuit of cheaper costs.
Japan's monetary authorities sold 4.51 trillion yen in the foreign exchange market in August to stem the sharp rise of the Japanese currency against the U.S. dollar and other major currencies, the Finance Ministry said Wednesday.
The amount, if expended on just one day, would be the biggest on record. The ministry did not reveal how many times it and the Bank of Japan stepped into the currency market between July 28 and Aug. 29, and such detailed information will be announced in November.
On Aug. 4, Japanese monetary authorities said they had conducted a unilateral intervention, briefly pushing the dollar higher by about 3 yen to around 80 yen. But the U.S. currency soon lost ground and plunged to a fresh postwar low of 75.95 yen at one point on Aug. 19.
On Wednesday, the dollar mainly traded at around 76.60 yen during Tokyo trading hours, with investors remaining cautious about additional intervention by the central bank, which acts as the ministry's agent.
In the past, Japanese monetary authorities also intervened on Sept. 15, 2010, dumping 2.12 trillion yen for dollars, the current one-day record. They also spent 692.5 billion yen on March 18 this year, when Japan took concerted action with the other Group of Seven advanced economies to weaken the yen.
Finance Minister Yoshihiko Noda, who will soon become Japan's new prime minister, has said he will continue to closely watch for any speculative moves in the market and take ''decisive action'' when necessary, a mantra that suggests Japanese authorities are ready to step in and address excessive exchange rate volatility.
The stronger yen has hurt the profitability of Japanese exporters and sparked fears that domestic manufacturers might accelerate their shift of production abroad in pursuit of cheaper costs.
