Posted On: November 07, 2011
Last week's massive intervention to draw down the value of the Japanese yen reduced the strength of the Pacific Rim nation's monetary unit but did not enhance its volatility, according to
Sale of the yen last Monday amounted to the equivalent of roughly $102 billion and reduced the value 4.7 percent against the U.S. dollar. Yet the yen remains a top currency of one outfit.
"The yen remains one of our favorite currencies as Japan still has a strong trade surplus and benefits from the global risk aversion that we're seeing," income and fixed-interest head Vimal Gor with BT Investment Management told Bloomberg. "Unilateral interventions in the Japanese currency have no real lasting impact. If anything we'd view this as a buying opportunity."
the Bank of Japan probably continued measures of intervening following Monday's sizable action, according to market sources.
The sources said signals indicate the Bank of Japan intervened in smaller amounts as part of efforts to pull down the value of the yen. In August, the nation also exacted an easing program but the value of the yen recovered 72 hours later.
Category: Industry News
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