By Zac, CountingPips.com
The G7 major central banks have agreed to intervene in the forex markets to weaken the Japanese yen to offset the surging strength of the Japanese currency following the tragic earthquake and tsunami.
The announcement was made by a joint statement of the G7 finance ministers that said, “We express our solidarity with the Japanese people in these difficult times, our readiness to provided needed cooperation and our confidence in the resilience of the Japanese economy and financial sector.”
This is the first coordinated currency intervention since 2000 although we have seen single central banks intervene in the markets in the past few years.
To read more about this and get some forex analyst views on the intervention check out this Reuters article: Instantview: G7 to intervene jointly in FX; dollar/yen jumps
Update: Adam Kritzer has also posted a thorough analysis of the Japanese Yen’s Wild Ride over at ForexBlog.org.
