JPY 01 (May 08 - Oct 11)

[winston]

Ray Barros:-

JPY could go to 90 and Support is at around 80

[winston]

US made billion-dollar move to support yen

The United States deployed $1.0 billion as part of a G7 intervention in foreign-exchange markets to tame the soaring yen after Japan's earthquake disaster, the Federal Reserve said Friday.

"The US monetary authorities intervened in the foreign exchange markets on one occasion during the first quarter, on March 18, buying $1 billion against Japanese yen," the Federal Reserve Bank of New York said in its quarterly report to the US Congress.

The New York Fed had confirmed the intervention to sell yen on March 18, without disclosing its value.

The day before, Japan and its economic allies announced they would intervene in world currency markets for the first time in a decade to calm turmoil sparked by the March 11 massive earthquake and tsunami, and subsequent nuclear crisis.

The pledge came after emergency telephone talks by the Group of Seven nations in response to a surge in the yen, which threatened the Japanese economy's recovery prospects.

The US intervention amount was split evenly between the Federal Reserve and the US Treasury, the New York Fed said.

The coordinated G7 intervention was conducted by the foreign exchange trading desk at the New York Fed, operating in conjunction with Japanese monetary authorities, the European Central Bank and the monetary authorities of Britain and Canada, it said.

In the three months that ended March 31, the dollar had depreciated 5.5 percent against the euro but appreciated 2.5 percent against the Japanese yen, the New York Fed reported.

At the same time, the dollar weakened 3.7 percent as measured by the Federal Reserve Board's major currencies index, in part because "US economic growth concerns increased" and markets expectated the Fed to maintain ultra-low interest rates but anticipated a rate hike from the European Central Bank.

Source: AFP Asian Edition

[winston]

Japan intervention amount seen at Y800-900 billion: report

TOKYO (Reuters) - Japanese authorities have spent 800 billion to 900 billion yen ($11.7 billion) in the foreign exchange market to stem the yen's rise, news agency Jiji reported on Thursday, quoting a market source.

After some verbal warnings earlier this week Japan intervened in the currency market for the first time since March after the yen inched closer to a record high against the dollar on Monday.

The record amount Japan spent for intervention is the 2.1 trillion yen it used in September.

Source: Reuters US Online Report Business News

[winston]

The yen was slightly stronger against the dollar after Japan unveiled a $100 billion credit line to help companies deal with the impact of recent currency strength but failed to intervene in the market.

Source: Reuters

[winston]

Support at 0.735 ?

[winston]

Japan fires fresh salvo on yen as economic upswing
by Leika Kihara and Tetsushi Kajimoto

TOKYO (Reuters) - Japan said on Friday it will boost its currency intervention fund and keep watching dealers' trading positions in yet another effort to tame the yen, in the face of growing evidence that its strength is stalling the economy's post-quake rebound.

August industrial output and other data showed Japan's swift recovery from the March 11 earthquake and tsunami, was tailing off under the weight of the yen's strength and faltering global growth.

Finance Minister Jun Azumi said the government would authorize a further 15 trillion yen ($195 billion) for market interventions, effectively increasing the amount available to a record 46 trillion yen.

He also said the government will maintain for two more months monitoring of currency traders' daily positions put in place last month to discourage speculative bets on the yen's rise.

Noda, who took over this month as Japan's sixth premier in five years, must oversee the nation's biggest rebuilding effort since the aftermath of World War Two while reining in public debt twice the size of the $5 trillion economy.

The slowdown is coming at a time when the government is debating tax increases to help cover the nearly 17 trillion yen ($221 billion)cost of rebuilding areas ravaged by the March disaster and there are growing concerns that the economy may stall before reconstruction spending kicks in.

Source: Reuters US Online Report Top News

http://www.newsmeat.com/news/meat.php?a ... &buid=3281

[winston]

BoJ Conducted Powerful Monetary Easing: Shirakawa

The Bank of Japan already implemented powerful monetary easing to stem sharp gains in yen, Governor Masaaki Shirakawa was quoted as saying on Wednesday.

The Bank of Japan has taken strong measures, which are not done by any other central banks, such as buying government bonds and exchange-traded funds, to support economic recovery.

http://www.rttnews.com/ArticleView.aspx?Id=1727668

[kennynah]

no effect on currency market, as they did on the two previous interventions...

market players wised up...becos in the 2 previous interventions, yen weakened drastically but only for 1 day...and then jpy strengthened back and some more...

so, once beaten, twice very shy...

[winston]

Have you ever wondered why the JPY is high, despite their lousy economy and low interest rates ?

[kennynah]

pray tell us