The Japanese government intervened on the rate of exchange between the U.S. dollar and Japanese yen.
Bloomberg.com reported:
The yen dropped by the most since October 2008 against the dollar after Japan sold its currency to stem gains that threaten the nation’s economic recovery.
The yen fell more than 4 percent against the dollar, the biggest drop since a 6.1 percent decline on Oct. 28, 2008, and surpassing the 3.93 percent drop at the previous intervention on March 18 this year. The Bank of Japan followed its Swiss counterpart in easing monetary policy, with Finance Minister Yoshihiko Noda saying Japan’s action was unilateral following joint yen sales by Group of Seven nations in March. The franc fell for a second day. The euro declined against the dollar before the European Central Bank’s interest-rate decision today.
The yen weakened 4 percent to 80.17 per dollar as of 11:19 a.m. in London, after breaching 80 for the first time since July 12. On March 17, the currency strengthened to a postwar record of 76.25 per dollar.
This is good news for those traveling to Japan and for Japanese exporters. The yen needs to depreciate further to make Japanese goods more competitive price-wise and to entice more U.S. tourists to Japan.
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