Situation of FOREX

Wednesday, September 15, 2010

The Japanese yen fell sharply against the U.S. dollar in trading on Wednesday after the Japanese authorities to intervene in the course of trading on the currency markets for the first time in more than six years. Investors to be vigilant in case another intervention after both the Asian and European sessions, Japan pushed the pair dollar / yen higher than 85, while the U.S. currency rose more than 3% to top the North American session. Traders said that has not yet appeared little reason to assert with confidence that Japan continued to be active in the currency markets and in the course of the North American session. The Japanese authorities have indicated their willingness to continue the intervention and the American session, as reported by the representative of the Government of Japan. The Ministry of Finance of Japan said that the intervention will again on Thursday if necessary. After the incident on Tuesday, falling pair dollar / yen to 15-year low 82.87 first series of orders to sell the yen had been brought into effect in early trading in Asia. Then followed a wave of sales that pushed the dollar above 85 yen. By midday on the New York session, the pair dollar / yen was trading system EBS at 85.63 against 83.08 at the close on Tuesday, just below the maximum of 85.78 reached in early trading. A pair euro / dollar meanwhile was trading with only minor decreases at 1.3014 against 1.3020 at the close on Tuesday. A pair of euro / yen was trading with a sharp rise at 111.49 against 108.20, a pair of British pound / dollar was trading at 1.5650 against 1.5563, and the pair dollar / Swiss franc - at 1.0032 against 0.9950. The dollar index on ICE, which tracks the dynamics of the U.S. currency against the trade-weighted basket of other currencies, stood at 81.446 against 81.074. The representative of the Japanese government said that the actions of the Ministry of Finance is partly aimed at countering speculative buying of the yen. Ministry of Finance announced that the intervention in about 20 minutes after the market started the first sale. A wave of selling of the yen, which is estimated at 1 trillion yen, was directed against what the government called "poor economic conditions" facing the country. "Previously we had intervened in the currency market to curb excessive volatility in exchange rates", - said Minister of Finance Yoshihiko Noda a hastily convened press conference. Federal Reserve Bank of New York on Wednesday declined to comment on the intervention. In the U.S. Treasury declined to comment on the question of whether consulted with the Japanese government and whether it has any involvement in the intervention.