Japan's Nikkei Index Up, Yen Falls Against Dollar

Try Our New Player
NTDTelevision
839
38 views
  • About
  • Export
  • Add to
For more news visit ☛ http://english.ntdtv.com Follow us on Twitter ☛ http://twitter.com/NTDTelevision Add us on Facebook ☛ http://facebook.com/NTDTelevision

The Yen fell against the dollar and Japanese stocks ended on a high, after an intervention in the foreign exchange markets by the Group of Seven industrial nations.

On Friday, finance ministers from France, Germany, Italy, the United Kingdom, the U.S. and Japan, agreed to join in a rare concerted intervention to restrain the soaring yen, which would be detrimental for Japan's exports.

After a tumultuous week due to Japan's nuclear plant crisis, the move seemed to calm the markets. Japan's Nikkei share index ended up 2.7 percent, recouping some of the week's stinging losses. It has lost 10.2 percent this week.

The U.S. dollar surged more than two yen to 81.80 after the G7's pledge to intervene, leaving behind a record low of 76.25 hit on Thursday.

U.S. markets, which had tanked earlier in the week on the back of the crisis rebounded on Thursday, but investors were not convinced the advance would last.

The yen has seen steady buying since the earthquake, as Japanese and international investors closed long positions in higher-yielding riskier assets such as the Australian dollar, funded by cheap borrowing in the Japanese currency.

0 comments