Japan Plans Buy European Bonds, Supporting Euro

The euro strengthened today after Japan announced that it’s going to buy the European government bonds, allowing the European Union to raise funds for rescuing its indebted nations.

Yoshihiko Noda, Japan’s Minister of Finance, said at the news conference in Tokyo:

It’s appropriate for Japan to make a contribution as a leading nation to increase trust in the deal. We want to buy more than 20 percent.

The economists say that the Japan’s bonds-buying wouldn’t heal the European troubles and the rally can be considered an opportunity to sell the euro.

EUR/USD went down from 1.2954 to 1.2948 as of 13:06 GMT today after rallying earlier to 1.2990. EUR/JPY advanced from the opening rate of 107.10 to the intraday high of 107.86 and later traded at about 107.52.

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