Japanese authorities intervene in money market

Japanese monetary authorities intervened in the foreign exchange markets on Monday morning to prevent the yen from rising further against the dollar. It was the third market intervention this year, and follows one on August 4th.

The move comes after the yen hit a record high, climbing to the lower 75-yen level in recent days.

Investors are buying the yen due to concerns about the US economy, and expectations that the US Federal Reserve may take additional monetary easing measures.

The Japanese authorities are concerned that a stronger yen will squeeze exporters' profits and slow the recovery of the domestic economy after the March 11th disaster.
After the new market intervention, the dollar was changing hands at the 78-yen level.

Monday, October 31, 2011 11:14 +0900 (JST)