Yen Falls as U.S., Canada Join G-7’s Post-Earthquake Currency Intervention for Forex introducing broker


The yen declined the most in more than two years against the dollar for Forex introducing broker, as the Group of Seven nations jointly intervened in foreign-exchange markets for the first time in more than a decade.

Japan’s currency slumped against all its major counterparts as the Federal Reserve and Bank of Canada joined the Bank of Japan and European central banks in an effort to sell the yen. G-7 finance ministers and central bank chiefs said after a conference call yesterday to discuss the impact of the March 11 earthquake that they will “provide any needed cooperation.” The Swiss franc weakened for the first day in six against the greenback after Libya declared a cease-fire.

The yen fell 2.8 percent to 81.13 per dollar at 9:36 a.m. in New York, from 78.89 yesterday, when it hit a record high of 76.25. The currency had appreciated 5.2 percent since the earthquake.

The yen declined 3.7 percent to 114.66 per euro. The dollar depreciated 0.8 percent to $1.4135 per euro.

The Japanese currency weakened as the Fed and BOC’s actions followed those of the Bank ofJapan, the European Central Bank, the Bank of England, the Bank of France, Germany’s Bundesbank and the Italian central bank. Japan’s authorities probably sold less than 2 trillion yen ($25 billion) in today’s foreign- exchange market intervention, a Japanese government official told reporters in Tokyo.

One-month implied volatility for the dollar-yen rate fell to 14 percent, from almost 17 percent yesterday. One-month euro- yen volatility dropped to 14.75 percent, from 17.25 percent. Implied volatility is a measure of expected price swings and the key gauge for option prices.