Bankruptcy

Japan Intervenes to Reduce Value of Yen

By mcbride

To stem the rise in the yen, Japan has taken steps not necessary since 2004 to change that course.  ?In Japan, Finance Minister Yoshihiko Noda confirmed the country had intervened in currency markets for the first time since 2004, saying Tokyo was communicating with authorities overseas but indicating that it had acted alone.

Market sources said it continued to intervene through the morning, selling the yen to stem a rise that was threatening the country’s fragile economic recovery.

The Nikkei (Osaka:^N225 - News) reversed early losses and surged 2.3 percent on word of the intervention. Shares of exporters, which have been dogged by the yen’s strong gains this year, were among the biggest winners, with Sony Corp (Tokyo:6758.T - News) rising 4 percent.

Stocks elsewhere in Asia struggled, however.

The MSCI index of Asia Pacific stocks outside Japan (^MIAPJ0000PUS - News) rose 0.3 percent, focusing more on questions surrounding the global economic recovery [Michael says: expect more questions about that ?global economic recovery??] and held in check by a lackluster performance on Wall Street overnight. (^N - News)?

Here is a link: http://finance.yahoo.com/news/Yen-drops-Nikkei-jumps-on-rb-1655850537.html?x=0&sec=topStories&pos=2&asset=&ccode=

Michael

Full post as published by Texas Lawyer Blog on September 15, 2010 (boomark / email).