BLBG:Yen Declines as Data Shows Government Intervention in November; Euro Rises
The yen weakened for the third time in four days against the dollar and fell against the euro as government data showed Japan carried out so-called stealth intervention to weaken the currency in November.
The yen weakened against all of its 16 major counterparts after Japanese Finance Minister Jun Azumi said he won’t rule out any options to curb the currency’s appreciation. Australia’s dollar surged after the Reserve Bank unexpectedly refrained from cutting interest rates.
“Japan has clearly shown its intention to stop a further appreciation of the yen, and there is a high chance” for more yen selling, said Hideki Shibata, a senior strategist for rates and foreign exchange at Tokai Tokyo Research Center Co. “Caution against intervention has increased in markets.”
Japan’s currency weakened 0.1 percent to 76.64 per dollar at 7:44 a.m. London time. It slid 0.3 percent to 100.82 yen per euro. Europe’s shared currency climbed 0.2 percent to $1.3157.
The Australian dollar strengthened 0.8 percent to $1.0815.
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To contact the reporters on this story: David Goodman in London at dgoodman28@bloomberg.net; Masaki Kondo in Singapore at mkondo3@bloomberg.net.
