Japan conducted foreign exchange intervention to the suspension of yen

Bank of Japan on the instructions of the Ministry of Finance of the country has intervened in the currency market for the suspension of yen, said Japanese Finance Minister Iosihiko Noda on an emergency press conference.

The decision on currency intervention was due to a sharp yen. In the morning on Tuesday the Japanese currency rose to a record 15 years mark in 82.87 yen to the dollar.

"Since yesterday, the yen has risen in price more ... This negatively affects our economy and businesses. We can not ignore (the situation) on the market. To curb excessive shocks, we conducted an intervention in the foreign exchange market ", - said the Minister. He stressed that the intervention was independent, but were held all coordination with foreign partners.

Appreciation of the yen market reacted to the victory of acting Prime Minister Naoto Kan and defeat his rival, Ichiro Ozawa on Monday in the past elections the leader of the ruling Democratic Party - thus Kahn retained the premiership. Ozawa advocated a more active policy on the market, and promised, if elected, to immediately carry out the intervention in the foreign exchange market. However, Kahn's victory was seen as an extension of half-hearted government policy, not excluding the intervention, but try to avoid specific statements and actions in this direction.

After the intervention, the yen fell below the 84 yen per dollar. The high yen threatens Japan's enterprises, export-oriented, big losses. In addition, in recent times due to the persistently high rate of Japanese currency risk arises inference production from Japan abroad. This could lead to job losses and threatening to gradually recovering economy.