Thursday, August 4, 2011

Yoshihiko Noda: Japan conducted one-sided intervention

Japanese Finance Minister Yoshihiko Noda confirmed that the Bank of Japan intervened today in the interbank market buying US dollars versus yen. Noda didn’t unveil the details such as the scale and the levels of the one-sided intervention.

According to the market’s estimates, the BOJ sold more than 1 trillion yen. Some traders even think that the amount may be even higher than that of the biggest one-day intervention conducted on September 15.

Japan’s central bank stepped in trying to stem the appreciation of the national currency after the Swiss National Bank moved yesterday in the same direction.

Both Japanese yen and Swiss franc are safe haven currencies that tend to strengthen during the times of high risk aversion like it has been so far. That makes Japan’s and Switzerland’s economies hurt.

The pair USD/JPY surged from 76.95 and approached the 80.00 level.

daily usdjpy 12-59

Chart. Daily USD/JPY

published by FBS Holdings © 2011