Monday, October 31, 2011

Yentervention Time

From Bloomberg:

The yen slumped the most since 2008 against the dollar as Japan stepped in to foreign-exchange markets to weaken the currency for the third time this year after its gain to a postwar record threatened exporters.

The yen fell against its 16 most-traded counterparts tracked by Bloomberg after Japan’s Finance Minister Jun Azumi ordered the intervention.

The yen weakened as Japan’s Azumi pledged to keep selling the currency after it climbed to the postwar record versus the dollar earlier today. Japan last intervened to weaken the yen in August, when it sold 4.51 trillion yen ($57.8 billion), the largest monthly amount since March 2004.

“I’ve repeatedly said that we’ll take bold action against speculative moves in the market,” Azumi told reporters today after the government acted unilaterally.


http://www.bloomberg.com/news/2011-10-31/yen-tumbles-4-as-japan-intervenes-to-sell-currency-third-time-this-year.html

From Zero Hedge:

Just in time for the MF Global news, we have what appears the latest Yentervention episode, as the USDJPY has just soared over 250 pips.We have no confirmation as of yet and could be merely a risk off move on the MF Global headlines. Or, potentially, was MF short a few yards of USDJPY and now that the end is in sight, is promptly unwinding all legacy positions?

http://www.zerohedge.com/news/yentervention-time

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