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Bank of Japan and G7 coordinated YEN intervention

Written by Sam Coxhead on March 18th, 2011.      0 comments

2:00 PM (NZT) As one might have expected the Bank of Japan have intervened in the market to curb the YEN strength. A G7 tele-conference bought a joint agreement  on the intervention. Historically they tend to do this in waves. The first round saw USD/JPY rise from 79.35 to around 81.00 before drifting back a touch, and then moving higher as a second wave of buying emerged.
The AUD has been a particularly large beneficiary of the intervention by the looks having jumped 140pts against the USD from its lows around .9780, before profit taking came in and its currently 100pts from the lows at .9880
This should be a theme over the short term, The BoJ having garnered the support of the G7 will make every effort to make sure the Yen does not surge too far. In the months after the 1995 Kobe EQ the YEN appreciated 20% against the USD. It is going to be very interesting to see how this plays out. Having the G7 participants also intervening in a coordinated way does give it far greater effectiveness than the BoJ going at it alone.
    Last 24 hours trade
  Current level Low High
NZD/USD 0.7231 0.7164 0.7265
AUD/USD 0.9880 0.9706 0.9918
NZD/AUD 0.7317 0.7288 0.7439
AUD/NZD 1.3667 1.3442 1.3722
NZD/GBP 0.4491 0.4438 0.4558
NZD/EUR 0.5160 0.5108 0.5248
NZD/JPY 58.75 54.78 59.07
NZD/CAD 0.7113 0.7058 0.7248