Yen Rises After Decline on Intervention

The Japanese yen pared yesterday’s losses on the speculation that Japan’s exporters would buy the currency after the government intervention pushed the yen down to the lowest level in almost two weeks against the US dollar.

The Japanese exporters may buy the yen before the fiscal half-year end. They usually purchase the yen to convert the overseas earnings into the local currency when they close their account books in March and September. The traders try to determine whether Japan’s government plans to weaken the currency or it simply wants to prevent the extensive gains.

USD/JPY went down today from 85.74 to 85.54 as of 8:51 GMT, following the decline to 85.21. The currency pair currently shows the upward trend.

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