G7 draft Agreement. Finance ministers of the countries that make up this institution have decided today to join forces to intervene in the currency market for the first time since 2000 with a view to curb the yen's rise, thanks to this measure has recorded its biggest drop in two years after the records yesterday.
The Japanese currency's rally was an effect occurred after the 8.9 magnitude earthquake that struck the northeastern coast of Japan and the tsunami that caused extensive damage to the Fukushima nuclear plant. For the Government of Japan, which is suspected to have sold about 5,000 million yen to weaken its currency in order not to put more obstacles to recovery, speculators accused of being behind the revaluation of the currency.
G7 representatives held an emergency meeting yesterday after the yen peaked against the belief that Japan has to repatriate funds to finance reconstruction. At the summit, agreed to their first joint intervention in currency markets since 2000. The ministers underlined that "excess volatility and disorderly movements in exchange rates have adverse implications for economic and financial stability" but nothing produced the announcement of its support to Japan by the Department of U.S.
Treasury the G7 has made his first stunt. In particular, the currency has fallen by 3% against the U.S. currency to set your change in 81.75 yen. Yesterday was a drop to 76.25 yen. To keep the economy and financial system in place, the Bank of Japan has made available to banks ¥ 34,000 million (429.998 million euros) in multiple injections of liquidity between Monday and Thursday, they have failed to remove uncertainty in the markets.
Today, the organization has decided to intervene with another 3,000 billion yen (27.085 million euros) in the short term. The Governor of the Bank of Japan (BOJ) Governor Masaaki Shirakawa, said that will continue to pursue a strong coordinated monetary easing in Japan, USA, UK, Canada and the European Central Bank.
In the stock, the Nikkei has managed to rebound 2.72% at today's session moving away from the losing streak that has suffered all week, except Wednesday, when it advanced 5.6%. Despite the rises, collects a cut of 11%, equivalent to a decrease in capitalization of 350,000 million dollars. 
The Japanese currency's rally was an effect occurred after the 8.9 magnitude earthquake that struck the northeastern coast of Japan and the tsunami that caused extensive damage to the Fukushima nuclear plant. For the Government of Japan, which is suspected to have sold about 5,000 million yen to weaken its currency in order not to put more obstacles to recovery, speculators accused of being behind the revaluation of the currency.
G7 representatives held an emergency meeting yesterday after the yen peaked against the belief that Japan has to repatriate funds to finance reconstruction. At the summit, agreed to their first joint intervention in currency markets since 2000. The ministers underlined that "excess volatility and disorderly movements in exchange rates have adverse implications for economic and financial stability" but nothing produced the announcement of its support to Japan by the Department of U.S.
Treasury the G7 has made his first stunt. In particular, the currency has fallen by 3% against the U.S. currency to set your change in 81.75 yen. Yesterday was a drop to 76.25 yen. To keep the economy and financial system in place, the Bank of Japan has made available to banks ¥ 34,000 million (429.998 million euros) in multiple injections of liquidity between Monday and Thursday, they have failed to remove uncertainty in the markets.
Today, the organization has decided to intervene with another 3,000 billion yen (27.085 million euros) in the short term. The Governor of the Bank of Japan (BOJ) Governor Masaaki Shirakawa, said that will continue to pursue a strong coordinated monetary easing in Japan, USA, UK, Canada and the European Central Bank.
In the stock, the Nikkei has managed to rebound 2.72% at today's session moving away from the losing streak that has suffered all week, except Wednesday, when it advanced 5.6%. Despite the rises, collects a cut of 11%, equivalent to a decrease in capitalization of 350,000 million dollars.
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